Home warranties, which have been around for years, originally gained popularity with real estate companies which used them to promote listing services. They promised that warranties would attract buyers and the seller would be protected from repercussions if appliances or systems broke in the days or weeks after closing.

Agents also found that home warranties saved occasional sales when they purchased them for buyers spooked by an unfavorable home inspection. Buyers appreciated the home warranty and they did offer protection to the seller from some post-sale problems, but they probably weren’t a major factor in choosing a house or an agent. The early home warranty was also limited in coverage and loaded with restrictions and exclusions. For many years they were a niche product primarily associated with the buying and selling of property. Now home warranties are bursting out all over, and marketing is no longer targeted to the home seller. Warranties are available for purchase at closing from real estate companies, whether or not they listed the purchased property. Agents are giving one year policies as housewarming gifts to high end buyers. Notably, agents, now familiar with the product, are buying them to cover their own homes. Home warranties are available to everyone and they may be an idea worth considering regardless of the age and condition of your house.

More on this at : http://www.mortgagenewsdaily.com/192006_home_warranty.asp

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