Why Are Home Warranties Important for Buyers?

What are home warranties? How important are they to home buyers, really?

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What are home warranties? Are they really important for buyers? 

A home warranty is essentially an insurance policy that protects your home from problems with electrical wiring, plumbing, appliances, etc. Even if no issues are spotted during your initial home inspection, complications can arise unexpectedly, and they often do. In fact, it always seems like something goes wrong right after a buyer closes escrow. The home warranty can help you with that. 

Generally speaking, home warranties last for one year. The cost of the home warranty really depends on the type and size of the property, but typically range from $350 to $700. Adding extra features, such as a pool, spa, roof, or refrigerator, can increase the cost of the home warranty as well. Prices may vary depending on what you want to be covered. 

Home warranties also provide peace of mind for homeowners. Typically, we ask the seller to pay for the home warranty as part of our offer. That is negotiable, but when you buy a home, the seller usually pays for the one-year home warranty. 

A home warranty will give you peace of mind.

It is important to keep in mind that home warranties are not catch-all insurance policies. They do not cover everything, and there is a service fee attached to each claim. So, every time you call someone from the home warranty company to come out, they do charge you a $65 to $90 fee each time their contractor has to inspect your property. 

Still, home warranties do offer peace of mind to new homeowners, even if they are not a perfect solution to every problem you may encounter. You do need to read the fine print. That said, home warranties have replaced many water heaters over the years, so it is important to get one when you buy a home. 

If you have any other questions about home warranties or about the real estate market in general, give me a call or send me an email. I would be happy to help you!