Do I Need a Home Warranty?
When going through the home buying process, your agent will suggest or ask or if you want a home warranty. What is a home warranty and why do you need one when buying a home?
Home Warranties are not a guarantee, but a mechanical service contract. They provide some protection for the buyer from unexpected repair bills during their first year of ownership. At the buyer’s option, they can be renewed.
Traditionally buyers request the seller pay for a home warranty for peace of mind, which costs between $450-650 depending on the coverage. It cost’s a lot of money to buy a home and the risk of having a huge system repair can leave you feeling uneasy. That’s why it’s important to get a home warranty and check the policy to see what’s covered.
Typically, systems covered by a home warranty include:
It is expected with the warranty that all items are in good working order at the time of closing or else they may not pay to fix the issue. This is why a comprehensive inspection is so important! Check out our video on what to expect during the inspection process to learn more about why this is an important step during the home buying process. If you experience a mechanical failure with a system covered by your warranty, they will repair or replace the system.
Make sure to not complete the work yourself or hire someone else to fix it! Submit a claim with your warranty company and they will send a someone to service the issue. At the end of the first year, the buyer can choose to renew the warranty.
I did want to note, in the 2021 market, we’re seeing buyers not ask the seller to pay for a home warranty to have a more competitive offer, and opt to pay for the warranty themselves. Make sure to talk to your agent on what’s best for you!
If you’re looking for someone to help you with the home buying or selling process, we’d love to help you make an informed decision that’s best for you and your needs.