Consider a Home Warranty

Sometimes when I do a home inspection with a buyer, we come across an appliance that is clearly old but is still in “normal working order,” which is all that the contract requires. If you are a buyer in this situation, what are your options?

This is where a home warranty can be a big asset. Some sellers actually purchase a home warranty at the time they list their property, and the balance of the time on the warranty is extended to the buyer. As a buyer, another option is to purchase a home warranty at the time you settle on your new home. Most home warranties will cover basic appliances and systems–electrical, plumbing, HVAC–for one year from the settlement date. The average warranty costs about $400 with $100 deductible.

The way a home warranty works is very simple. If you have an appliance or system that breaks or stops working, call the warranty company first; this is important! The warranty company will not pay a claim if you use your own vendor. You will be responsible for the deductible, but then the warranty company will cover the remainder of the cost.

I make sure all of my buyers have home warranties in place. If the seller is not willing to purchase the warranty, I will purchase the warranty for my buyers. Many of my buyers have used their warranties within the first year, and some of them have found the warranty so helpful they have renewed the warranty each year. A recent buyer had a leaking hot water heater and called the warranty company. The company had a plumber out that day, and the plumber determined the hot water heater needed to be replaced. My buyer’s only out-pocket-expense was the $100 deductible. The warranty paid for the rest.

I have experience with many of the popular home warranty companies and can help you choose the company and plan that is best for you and your situation.