Home Warranty Know-How

You've probably been offered extended warranty plans when you bought your new computer or phone.  Sure, some people buy that kind of plan, but most consumer reports say they aren't really worth the extra money.

In the case of a home warranty, however, it is a completely different story.  Here is some essential home warranty know-how, courtesy of the Zillow Blog.

What is a home warranty?

When you move in to a new home, will be offered a "home warranty" which could be anywhere from $300 and $500 a year, depending on where you live.  It covers the costs of repairing or replacing any kind of malfunctioning system in your home: like a leaking dishwasher, a fizzled clothes dryer, or a hot water heater that isn't heating anymore.

Want to know how to get a free warranty?  Read to the end!

You typically  don't have to pay anything out of pocket or make any arrangements other than calling your home warranty provider - and they take care of the rest.  In some cases there can be a co-pay around $50 per incident, but nothing too substantial.
Who should buy a home warranty?

According to Zillow, home warranties are really great for first-time buyers/those transitioning from renting to buying.  Renters are used to calling up their landlord whenever something breaks down, and with a warranty, the home warranty company fills those shoes nicely.

These homeowners are also, typically, very busy and the added stress of trying to find an appropriate repairman, then schedule in the repairs (often requiring a large chunk of time) can be quite taxing.  In this way, perhaps the savings these home owners receive is found in more than just monetary relief but also in peace of mind.

But home warranties can be good for more than just first-timers.  Are you buying an older home (say, 15-20 or more years old)?  Are the appliances aging?  If so, then a home warranty can well be worth your money.  A good deal of appliances start to break down within that time range, and you certainly don't want to rely on luck alone to keep you from having all of them break down around the same time.

Lastly, investors and "accidental landlords", homeowners who end up renting some or all of their home out until they are able to sell, are fantastic candidates for home warranties.  If you are not particularly experienced as an investor or you haven't established a good network of repair workers, it could be a lot easier to go for the home warranty.  It is a good way to minimize stress and to respond to your tenants in a timely manner.

Where do I find the best home warranty options?

Your real estate can most likely give you great referrals for around the area, and/or you can read some reviews of home warranty companies on the Home Warranty Reviews site.

In some cases, a home warranty can be negotiated into the purchase contract on your home, meaning you get a one-year warranty at no up-front cost to you. Just ask me how!

Struggling with whether or not to buy a home warranty?  Want some real-life assistance of a real estate agent?  Send me an e-mail or give me a call, and we can discuss your options.