Profile picture for sunnyboyz

Buyers Home Warranty Plan

My Purchase Contract has a Home Warranty Plan accept/decline.
Is the fee listed for it a one time charge?
How long is it good for?
How do I find out the outlines of coverage?
  • March 28 2011 - Phoenix
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Answers (16)

Hi Sunnyboyz,

The Home Warranty is usually paid for upfront, a year in advance.  You need to be asking your real estate agent about this.  You do have an agent representing you, don't you? 

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
  • March 28 2011
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Dear Sunny:

That is standard. You can elect to purchase a contract. There are several different companies that offer home warranties. The terms and conditions will answer your question. Typically, they are for one year. The fee is typically deducted from your closing costs unless he seller has agreed to pay for your warranty. Your Realtor will be able to explain this to you.

Jeff Masich, Realtor
Arizona Homes and Land
HomeSmart
Scottsdale
  • March 28 2011
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I would first advise you to check with your Buyer's Agent, the one that is assisting and representing you in the purchase.  Beyond that, there are a variety of home warranty plans out there.  Most of them are for one calendar year from close of escrow, but there are others with multiple year terms.  You will need to find out which company will be issuing the warranty plan in order to find out the details of the plan.  That might be your choice, or it might be the seller's choice, but that information should also be indicated in your Contract.
  • March 28 2011
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You should be able to choose your own home warranty unless it is one the bank is offering you. Typically, home warranties are an up front cost for the duration of a year but all home warranty plans will vary. To find the answers to your questions, you'll need to look into the specific warranty plan you're wanting or is being offered to you. Your Realtor will let you know which it is if you don't know.

Here's some warranty plans you may want to check into:

  • March 28 2011
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Profile picture for Ofe Polack
You need to discuss this with your buyer agent or the listing agent if you are not working with an agent.  Oftentimes a Home Warranty is offered by the seller and paid by seller at closing.  You are saying that there is an option....you need to discuss that with whoever gave the document.
  • March 28 2011
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If your purchase agreement has this offer (which you pay for unless the seller specifically states in writing they are paying for the service) your real estate agent should've explained the program to you.

Most brokerages have brochures from the company they are affiliated with that will explain the program to you.

Obviously if the seller is willing to pay for the warranty (which some Freddie Mac / Fannie Mae listings do) it's a great deal for the buyer. But they typically only pay for one year of coverage.
  • March 28 2011
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Profile picture for Sharon Lewis
Home warranties are great for home buyers, it gives you that much more protection after you have had a home inspection. Normally its for one year after the purchase, but you can renew it. I have it on my personal home, love it.
  • March 28 2011
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Profile picture for Mills Realty
Home waranties are generally for one year and the fee is paid upfront.  I encourage my sellers to provide this to buyers as courtesy.  You'll need to check with the company as to what they cover.  The major companies have websites and the information is easily obtainable. 
  • March 28 2011
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Most home warranty companies have an online version of the warranty showing the coverage and options if your agent has not given you a brochure. Yes, it's a one time charge paid through escrow at closing. You will have the option to purchase it yourself, have the seller pay for it or split the fee between the buyer and seller. They are generally a one year policy. Have your agent go over the policy with you to make sure it will work for you.
  • March 28 2011
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Answering not as an agent, but as a AZ homebuyer - home warranties are well worth the money you're paying for it. Ours paid for itself the first year with little items here and there, and is well on it's way to paying for itself now (our air conditioner may need to be replaced soon.) It is a yearly fee, but when you consider how much some repairs can cost, it will be worth it.

The option is on the purchase contract as a CYA for the agent - it needs to be noted that you were at least told of the option to buy one.
  • March 28 2011
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What company is it with?  Most of, if not all of your questions can be answered on their website.  Normally it is for 1 year, and for example AHS shows you all that is covered on their web site.  I normally ask for one for all my buyers, the company will also send them a packet once they move in, with all the information, whom to call for work, prices, and spells out exactly what is and is not covered.  Some clients will choose to extend coverage when a year is up, some do not, depends on the client.
Best of luck.
Spirit
  • March 29 2011
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Sunnyboyz, just realized now it was you posting this question.  Honestly, you have an agent there in Phoenix, she needs to be answering your questions for you.  If not, please call her office and ask to speak with her Associate or Designated Broker.  This is part of her job, she wrote the contract & she needs to be answering your questions.  Best of luck.
Spirit
  • March 29 2011
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Profile picture for Dunes....
Spirit...

Don't know if it's the case here but I have seen over the last 4 years Clients who fully intend to do what you have so correctly suggested but often they first appear to post to learn if their suspicions (it shouldn't be this way) have merit and then if they do they will go thru a list of things as they think of them so when they do Speak to the Broker they have a better grasp of what the Agent was not doing so all the issues are addressed...

When it is not a "I hate all" or "this proves all are" I feel these are some of the most informative Threads for Consumers...Simple Questions, simple answers for a Huge & Important Decision making process...

What's expected of a "Good Agent"

What's the Bar Agents have for Agents?

What are my options?

Costs/Expenses..needed or Candy

Quality stuff & Just this Dummies Opinion


 
  • March 29 2011
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Right, and I agree Dunes.  Just that, I feel bad that anyone who has an offer on the table that have questions when they are working with an agent already.  I mean, if you have enough time to write up an offer you should have enough time to answer all their questions.  You are right, he has some excellent questions and by posting them, creates a thread for other buyers to see and may answer their questions as well.

I simply am frustrated by the lack of professionalism from other agents, not all mind you, but some...however, we each "run" our business our own way.  Personally, I do believe in Karma...

Thanks for the input.
Spirit

  • March 29 2011
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Profile picture for Dunes....
Thank you Spirit for helping make this Forum a better place..
Fascinating to me how it's always the 3rd Party in this Forum who decides what's of value ultimately lol....The Consumer... and they can't do it or they leave with a Bag half full if we do not have a Diversity of Opinions views...

Plus the Good Pros Shine...Win Win

As far as the Unshiney Pros...I think I mention them once in awhile ;)

  • March 29 2011
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And glad you didn't misunderstand me, as it is not about me being "right" when I answer.  What I really like about forum boards like this and Trulia.com is it allows a mixture of voices, not to say any one is more "right" than another.  I have found gathering other opinions allows a person to see the question and in reponse, the answer(s) from different or varying degrees of perspective.   All this for free, which surprises me that so many agents out there bash Zillow.com.  For a free source of information, it is a good tool to have in the clients belt.  We know the information nor their "Zestimate" are 100% accurate but for a person that does not even know where to begin, that estimate of market value is better than nothing or using tax assessed value.

Look forward to reading more of your posts.
Spirit

Thanks.
  • March 29 2011
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