• Should You Purchase A Home Warranty with Your New Home?

    Posted on July 1, 2013 by in Tips for Home Buyers

    Fidelity Home WarrantyWhen it’s time to purchase a home, you might be asked the question if you want to purchase a home warranty?   With a million other things on your mind, this may be the last thing you really want to invest much time on, but read on as a five-minute investment of your time now could save you a little headache down the line.

    A Google search will reveal several home warranty companies;  those that I have personally worked with are as follows:

    American Home Shield

    2-10 Home Warranty

    Fidelity Home Warranty

    Home warranties can be ordered at any time, weather at the time of purchase or for a home your family has lived in for years. Many buyers choose to have it paid as part of their closing costs. Some home sellers will even buy a warranty for a home buyer to give them piece of mind.

    A home warranty can get you through the first year, and possibly the hardest year, of home ownership without worrying about major repairs.  I  highly recommended for a home warranty for new construction and older homes with “workable” but dated appliances, water heaters, and furnaces, are.

    If you are buying new construction, it is especially important to make sure that you understand any warranties that the builder is providing.  A common myth in real estate is that new homes come with a warranty and nothing could be further from the truth.   Builders that do offer warranties will have you sign receipt of the terms of any warranties, builders that do not offer warranties will usually stay quiet unless you specifically ask that a warranty be provided.

    Upfront fees are anywhere from $400 to $700, varying on the plan and typically charge about a $50 service fee for each service call.  It is essential to look over the contracts carefully to make sure all of the wanted items are covered.   Many of the warranties today have a basic plan with the option of adding additional coverage such as a spa or air condition unit.

    Looking for a home with a pool?

    Looking for a home with a pool?

    If you are concerned about the responsibilities of home ownership a warranty can help get you though the first year without extra stress and hassle.  If  you are the type that just hates home repair projects, a home warranty might again be the answer.  I even know a number of landlords who maintain home warranties on their rental properties in lieu of having a handy person on hand.

    Please let me know if you’ d like additional information about a home warranty.

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