If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.
Hey Run The Money fans, this post is sponsored by Alon over at Review Home Warranties. I'm sure you will find it informational and valuable for your next home purchase.
Buying a home is likely the largest purchase any of us will ever make. When my wife and I were in the real estate game, we did our best to educate our buyers of all the benefits involved in the transaction. One of those benefits is when the seller includes a home warranty to help cover repair and maintenance costs.
That’s what I want to talk to you about today. Below you will find the basics involved in what home warranties can do for you as a homeowner. Also, you will understand why even if the seller of your next home doesn’t include one, it might be in your best interest to purchase one for yourself anyway.
As Dwayne over at Smart Centz explains, home warranties “typically covers the repairs on specific items in a home, such as heating and air conditioning systems, plumbing, and built-in appliances.” For new homes, the builder will likely offer you one and for existing homes, the seller or even your agent could offer a home warranty.
Elizabeth over at The Balance says that home warranties typically run in the $300 to $500 range. When a problem arises in the home, you call the home warranty company who while call the service provider. Then, you as the homeowner would receive a call from the provider to arrange a time to fix the issue. You pay a service fee for the visit, which as Elizabeth explains, is likely to run you under $100.
Your home warranty is not for outdoor items like sprinklers, pools, or spas. Depending on your coverage plan (and Elizabeth says they’re all different so ask your real estate agent), appliances like refrigerators, washers and dryers, and even garage door openers may or may not be covered.
Jason from Reaching Our Balance suggests reading the fine print when it comes to what your home warranty covers. That makes sense of course, but how many of us actually take the time to read the fine print?
That is really up to you. Many people like having the peace of mind and there’s no doubt it can save a ton of money if a higher cost item goes in an older home. The research is mixed on the issue with some saying home warranties are worth it and some choosing not to renew their policies.
At the end of the day, buying a home is a fun but stressful process. That goes double if you’re also trying to sell a home and need the money for a down payment. What a home warranty does for you as the homeowner is prepare you for the repairs you already know you will need to make.
So, readers, let me toss the ball over to you. What do you think of home warranties? Do you have one on your current home? Do you plan on getting one? Please share your thoughts and comments below.