The number one con to home ownership is maintenance. Repairing plumbing leaks, heat and air units and such can be expensive. An option is to purchase a home warranty. Generally they are somewhere around $500 a year and will cover the mechanics of the home. They can be purchased at the time of sale or after the property sale. But the question is are they worth it. I guess the answer depends on who you ask. I like putting them on older homes or on homes that my first time home buyers purchase, because they do ease the cost of many repairs. But there are a few things you need to know if you are going to purchase a home warranty.
- You must call the 1-800 # to get service and use their contractors. If you use your own contractor, the repairs will not be covered.
- It can take a few days to get the service authorized and the work performed. So it may not be as fast as hiring your own contractor.
- Not everything is covered by a home warranty, so ask or read the fine print before the contractor shows up at your door to inform you that the cracked toilet is not covered but you still owe the deductible.
- Some items in your home may not be currently up to code. So while the home warranty company may cover the broken hot water tank or furnace, you may owe for the upgrade to current code charges. Of course this still may be less than repairing the item without the warranty.
- If you are buying an older home with older appliances and mechanics, a home warranty may give the buyer piece of mind knowing that the home warranty company will repair many items that may break over the year.
- You may ask the warranty company for a buy out on an appliance rather than repairing the item. This may help you to afford an upgrade.
- If you are having trouble with a home warranty company repairing an item reach out to your realtor who can reach out to the sales rep. The sales rep may be able to help the situation.
If you have questions regarding real estate, please feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net