What You Need to Know About Home Warranties

celebrate-2953723_640You’re probably familiar with homeowners insurance, but fewer people understand the benefits of a home warranty. While insurance is required for most home loans, a home warranty is not. But even though it’s optional, a warranty can be helpful—especially for new homeowners.  

What Is a Home Warranty?

A home warranty is a service agreement that can help you cover household expenses that come up due to regular wear and tear. Home warranties typically last for one year and provide a set monetary payout that can be used toward repairs and required upgrades that arise after moving into a new home.

The Difference Between a Home Warranty and Homeowners Insurance

Unlike homeowners insurance, which usually covers losses due to structural damage or theft, a home warranty helps out with your home’s major systems and appliances. It’s a convenient stop-gap that can cover large expenses like new windows, updated plumbing, or replacing a major appliance like a refrigerator. In addition to covering different things, there are some other significant differences between home warranties and home insurance.


  • No deductible: There is no deductible to pay with a home warranty. Instead, the home warranty reimburses you for money paid out to replace or repair an appliance or system.
  • Limited payouts: While both warranties and insurance come with limits, a home warranty will only pay out the amount set in the terms of the warranty. If you have a $500 home warranty, then that is the maximum reimbursement you can get from the policy, regardless of how much you paid for the repair. For example, if your air conditioner had repairs that totaled $1,000, you could get half of that amount taken care of by your $500 home warranty.
  • Time limits: A home warranty is good for a specified amount of time, typically twelve months. After twelve months, the warranty will no longer be valid. Because this is a use-it-or-lose-it situation, make sure you take advantage of the warranty within the required time limit.
  • No monthly premiums: Unlike homeowners insurance that you pay for monthly, a home warranty is usually purchased outright. That means you (or the seller) will pay upfront for the home warranty, and there will be no additional costs over the term of the contract. Some companies may offer installment plans, so don’t despair if you’re worried about affording a warranty upfront.
  • Warranties can be transferred: The person who purchased the home warranty isn’t the only one who can benefit from it. In fact, it’s common for a seller to purchase a warranty as an extra incentive to buyers. The warranty is attached to the home, not the person, which makes it easy to transfer during a sale.


Important Things To Know About a Home Warranty

As with any insurance or supplemental coverage, you need to understand the limitations and requirements so you can take full advantage of reimbursement or other payouts. Because home warranties can be tricky, here are the most important things to know.


  • Coverage can be specific: Not all home warranties cover both major systems and appliances. Some warranties only cover one or the other. Depending on the type of coverage you want, make sure you choose the right policy.
  • Not everything is covered: In addition to being specific on a large scale, don’t forget to read the fine print to find any exclusions that may apply. An appliance warranty may not cover every appliance, and HVAC systems are commonly left out of major system coverage. Other things that could be excluded are sprinkler systems, garage doors, and pools and hot tubs.
  • You may need to use a preferred provider: Some home warranties come with a list of providers that you need to use in order to make a claim for reimbursement. As with medical coverage, going outside the preferred network could get your claim denied.

Home warranties are a great way to supplement common costs that come up during the first year in any new home. Whether you’re buying or selling—if you’re concerned about issues with appliances or systems—be sure to look at a home warranty as part of your plan.

7 Roadblocks that Side Track and even Derail Closing

canstockphoto14767089Purchasing a home can be both exciting and nerve-racking. Prospective homeowners face tremendous amounts of waiting as the home buying process ensues. Here is a list of everything that can go wrong during the closing of your new dream home.

Low Appraisals

Roughly 66 percent of buyers get financial assistance when purchasing a home. Mortgage lenders require appraisals of the property to determine the worth even if the buyer and seller have already agreed on a price. In the case of a low appraisal, the borrower can make up the difference, find financing elsewhere, pay for an additional appraisal or back out of the transaction completely.

Financing Challenges

Unfortunately, pre-approval doesn’t always ensure financing. Last minute problems may arise if the borrower loses a job, gets divorced, makes major financial purchases or experiences any other change in circumstances. Delays can occur as new financing is obtained.

Property Liens

Before closing, a title search will be conducted on the property. If there is any unpaid debt that lists the house as collateral, the sale can’t move forward until all liens are cleared up.

Needed Repairs

An inspection will be conducted to assess the integrity of the house. The inspectors will look for insect infestations, damaged roofs, leaky pipes and more that can lead to delays. If repairs are needed, both parties decide whether the seller will make repairs before closing or compensate the buyer for making the repairs at a later date.

Inspection Delays

Often, many buyers ask to do a walk-through of the home after the sellers have moved out. The closing may be delated as both parties decide how to handle any issues that may have occurred since the last showing. Issues include furniture or rugs concealing damage, movers putting holes in the wall and more. The initial purchase contract typically outlines how delays should be handled.

Changing Terms

In October 2015, three standard forms were replaced with the Loan Estimate form. Mortgage lenders must send one of these with the terms of the actual loan at least three business days prior to closing for the borrowers to review. If the terms need to be changed during this time, the three-day window resets and thus extends closing.

Unprepared Buyers

A buyer is expected to show up at closing with certain documents including copies of the homeowner’s insurance policy, proof of insurance payment, photo ID and certified funds for the closing costs. Failure to bring any of the above mentioned items will post pone the closing.

5 Factors that Affect Your Homeowners Insurance Premiums

home-2095258_640House hunting can be quite the process but finally closing on the house you’ve always wanted makes the tedious process worth the while. Now that you have a home you should probably insure your investment. The following factors can affect the price of your homeowner’s insurance premium:

Home Features and Characteristics
The age of your home along with the type of structure, roof, wiring, garage and more can all affect the insurance premium. For example, older homes usually cost more to insure.

We’ve heard it before, but it’s all about location, location, location. Your insurance premium and rate can be affected if you live close to a fire station, are often exposed to extreme weather conditions such as hurricanes and tornadoes or you live in a neighborhood that is more prone to crime and theft.

Protective Devices
While other items on this list tend to increase your premiums, the following can help lower them. Alarm systems, smoke and carbon dioxide detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower your insurance costs.

Personal Factors
Such as smoking and credit score can affect your homeowner’s insurance costs as well. Usually smokers tend to pay more while a good credit history can lower the amount you pay for insurance.

Claim History
Just like car insurance, a history of claims means that you could pay a higher premium for your homeowner’s insurance coverage.


Here’s what to expect when looking at a typical homeowners insurance policy:

Your policy may differ in structure, but most policies contain the following sections:

  • Declaration Page

Typically, the first page within the policy contains summary information like the name and address of the insured, the dollar amount of coverage, description of insured property, cost of the insurance, name of the insurance company and their contact information.

  • Definitions

The definition page lists and explains the meanings of the various terms used within the policy.

  • Coverage

The coverage section explains and details the protection in your homeowners insurance policy for property such as house, structure and contents along with liability including bodily injury and/or property damage to others.

  • Exclusions

This section provides information and explanation of what is not covered under property and liability by your insurance policy.

  • Conditions

This section usually outlines each party’s responsibilities under the policy terms. The procedures to settle any losses, claims or disputes are detailed within this section.

  • Endorsements

Any and all amendments or attachments that alter the standard coverage provided by your policy can be found in this section. Some additional endorsements include flood and earthquake protection and require an additional premium.

5 Reasons to Reconsider For Sale By Owner

home-2406416_640Every year homeowners contemplate hiring an agent or listing their property for sale by owner (FSBO). However, FSBO might not be the best option for the majority of sellers. Here are a few considerations to mull over before you decide if you have the chops to take on a complex real estate transaction.

You probably don’t have the time

Think about it, do you really want to be answering calls and knocks at the door from complete strangers who may or may not actually be potential buyers? Safety and privacy are big considerations when deciding to sell without an agent.

After sale issues

Although employing an agent doesn’t protect you from liability or guarantee that there won’t be any after-sale consequences, they help by taking precautionary steps. An example of an after sale issue includes a leaky roof and the buyer now wanting you to pay for a new roof. However, if you disclosed the leaky roof before the sale your bases should be covered. The key to avoiding after sale issues lies with prevention.

You may not be saving money after all

One of the most common reasons for someone to try and sell their house on their own is to save money. Although a very valid reason, the average FSBO home sold for $210,00 in 2014 compared to $249,000 for a home sold by a real estate agent according to the National Association of Realtors.

You could get scammed

Or taken advantage of. Buyers often feel that they can get a better price or deal for themselves because owners lack the skills and knowledge to negotiate. By employing an agent, you will have an expert negotiator in your corner ensuring you get top dollar for your property.

It’s all about the details

Underestimating the complexity involved during the entire real estate purchasing process can be detrimental. The list of potential mistakes is huge unless you are aware of your state’s laws and regulations regarding real estate transactions. Knowing how to read closing documents, fill out purchase agreements and calculate the true value of the property are extremely beneficial skills in protecting you from future litigation.

6 Home staging tips to follow

bed-1575491_640Are you planning to put your home on the market? Well, if yes, you need to know the staging home tips. With the help of these tips, you will be able in selling the home at your desired price. There are some important points that are specifically focused on the buyers. If these points are properly handled, no one can stop you from selling the home at a good price. Here are some important staging home tips:

1.    Say no to clutter:

Clutter, an enemy to a great impression of your house. Before selling your house, you need to get rid of this enemy. De-clutter your house to the extent to which this is possible. You can also make rules to avoid cluttering in your house like if someone buys a new thing, an old thing must be discarded. Moreover, the cluttering can also be caused due to a lot of furniture, you need to free space to free your mind.

2.    Style up the dining of your house:

Well, although the upper point is emphasizing on the de-cluttering of your house, but you need to make sure that essential things that play a role in creating a balance in your house must remain in it. The dining room can be a blind spot. It may result as something uninviting between the dinners which are why you need to style it up a bit.

3.    Rearranging furniture:

As a staging home tips, it is a must. Rearranging your furniture can provide a new look to your house plus it will also add up to the pleasantness. However, you need to make sure that you arrange your furniture in a balanced way.

4.    Change the lightning of your home:

Lightning plays a great role in creating a feel for a house. Lightning may welcome and sooth the person living in it or it can also create an uncomfortable environment. Most of the houses face the issue of improper lightning. You need to identify the ways in which the lightning will be distributed in your house. For example, too much sunlight in the bedroom is uncomfortable for some people.

5.    Experimentations with colors:

It is always great to play with color. Different colors have a different effect in different situations. That is the beauty of which you can benefit yourself. Do not hesitate to use dark colors on the walls of your house or on the floor. They can add up to the dramatic look of your house. You can also create an interesting and dramatic fireplace by going for darker shades.

6.    Take a look at your floors:

Like all other parts of your house, the floors also needs your attention. Make sure you are renovating them if it is required. Otherwise, rugs are another great idea that can be used to provide a new look to the floors. Plus, they can be used for long-term purposes also.


These are the home staging tips that can be followed to create an appealing look of your house.




Reference links:

  1. http://www.hgtv.com/shows/designed-to-sell/15-secrets-of-home-staging-pictures
  2. https://www.houzz.com/ideabooks/2661221/list/sell-your-home-fast-21-staging-tips
  3. https://www.realsimple.com/home-organizing/home-improvement/home-staging-tips

Utah’s job growth

canstockphoto3789644As per the countries of the whole world are concerned, there are a lot of countries that are struggling day and night for their job growth. Utah, on the other hand, has to provide its residents with the different job opportunities. As per the studies conducted in 2016 showed, Utah has created around 4000 jobs. According to this figure, the job growth in Utah was 2.8 percent which is nearly the double amount of national average. Likewise in 2017, the job growth rate of Utah continue of growing and it was named as the number one in terms of growth rates.

According to the employment report that is issued by the Bureau of Labor Statistics, Utah is on number one rank. It has a total job growth of 3.2 percent in the US. Moreover, it is also placed on number one for the private sector jobs. However, as far as the unemployment rate of Utah is concerned, it is on the eighth position with 3.1 percent.

As the authorities are suggesting, the Utah is moving towards the right goal and currently going on the right path. The rankings will eventually increase which will then lead to the positive outcomes. The only thing that the major people of Utah has to do is to provide opportunities to the people so that they can play their part in the economic success of Utah. With the increase of job growth rate, the living Utah conditions are also improving.  It is predicted that are people of the Utah who are currently enrolled in different educational programs will be able to get the best jobs once their education is completed. Moreover, the chief economist in the Utah Department of Workforce Services, Carrie Mayne, has suggested that the students who will graduate in the near future must start looking for the employment opportunities.

The growth in the travel and the tourism activity of Utah has played a great role in this development. The Utah’s ski resorts and the national parks have attracted a lot of visitors in the past year which is why the job growth rate is positively affected. Moreover, Utah has shown an economic growth rate of 6.1 percent in the state’s leisure and hospitality sector.

Everyone can see the fact that good things are occurring in Utah, a great development is taking place which is why the future is quite bright. Moreover, Utah is also considered as the soundest state of the nation. The reason behind this dramatic change according to Gov. Herbert is the productive and the prepared skilled labor force. Multiple factors are playing their part in the development of Utah. The monthly labor market of the Utah is indicating that the economy is operating at near or full employment.


Reference link:

  1. http://utahpolicy.com/index.php/features/today-at-utah-policy/13011-utah-s-job-growth-ranks-no-1-in-the-nation
  2. http://www.good4utah.com/news/local-news/utah-shows-highest-job-growth-rate-in-the-nation-again/256207520
  3. http://www.boydbrown.com/2017/04/03/utah-job-growth-ranks-1-in-nation/