Home Warranty- Buyer

As a Boulder Realtor, I recommend that my Boulder real estate buyers ask the seller to pay for a home warranty when we write a contract offer. The cost is very small and it’s great to have this peace of mind. (When I work as a Boulder Realtor representing my sellers, I have my sellers offer a pre-paid home warranty when listing their home for sale in the Boulder real estate market)

The concept of a Home Warranty is simple enough. For a one time premium of$300-$500, which the buyer, seller, third party, or some combination can pay, a warranty provides one year of insurance. It generally covers major home systems (including electrical, air conditioning, heating, and plumbing) and built-in appliances (ovens, water heaters, and dishwashers are usually covered, but refrigerators usually aren’t).

Under most warranties, a policyholder who has a problem with a covered item calls the warranty company, which sends a repair person from its own local network of contractors in the local Boulder real estate market. The policyholder pays that contractor a service charge (usually $50 -$70) for each visit, no matter how minor or extensive the work is. The cost of any repair or replacement is paid by the insurance company after the service charge is paid.

Most warranties don’t cover structural repairs such as the roof or foundation but such coverage may be available for an increased premium. A copy of the ERA /AHS Home Warranty Terms and Conditions document can be provided for your review.

The benefit of a warranty for buyers is peace of mind and protection from unexpected high repair costs during the first year of ownership of your new Boulder real estate investment. This can be especially valuable when purchasing an older property. NAR (National Association of Realtors) data shows that over 74% of the homeowners that have a warranty do actually use the warranty in the first year of home ownership.

As your Boulder Realtor, if you give me the privilege of working for you, I’d highly recommend that you allow me to ask the seller to pay for a home warranty or that you elect to get one in any case.


  • If you're thinking about buying or selling Boulder real estate or you just want more information, about relocating to the Boulder area call me today!
    (303) 520-0070
    Skype-zacharyepps
    Email me