Frequently Asked Real Estate Questions-Ep. 2

Should I purchase a home warranty?

Most home warranty programs cover Heating and A/C, Appliances, Electrical and Plumbing. Home warranty companies work like this, they will come out and repair these items for a trip fee and if they are not able to repair them, they will replace them. For a 1 year home warranty it is about $400 depending on what company you use. Most will give a discount per year if you sign up for more than one year at a time. It is important to note, this does not replace home owners insurance or a whole home inspection as both of these have different coverage for your home.

As a buyer you can request the seller pay for this on your behalf or you can purchase it at closing, or anytime after. If you have a whole home inspection done on the house you are purchasing, most home inspection companies will give you a 90 day free home warranty.

As an agent I always advise my buyers to review what the home warranty gives you and decide if this is something you feel you will need or will help you in the first year of owning a home. If the appliances or heating and A/C are older units it may make more sense to have a warranty plan, versus if the home is only 2 years old and those items typically covered are fairly new.

For sellers, at times it makes sense for you to automatically include a home warranty for the buyers. If your home comes with a 1 year home warranty, it will take away the buyers concern of a costly out of pocket repair. This may help your home sell faster than a comparable home without a home warranty included for the buyer.

Should I purchase a home warranty? My answer is, highly consider it, with regard to the condition of the items it will cover in the home you are purchasing.