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Replies (13)
- Mya Berlyant, "MyaBerlyant"
- Contributions:260
I think it depends on case by case basis. Buyers purchasing properties with older appliances - and not too much left over cash after downpayment and closing, Home warranties are great (especially if we got the seller to pay for it for the first year). But for properties with new appliances still under the manufacturer's or extended warranty - it would be a waste of money. I personally have couple rental properties where I cancelled the Home Warranty after the first year and have not regreted that decision.
Home warranty call fees have increased to $55-65 no matter the reason for the call (they were $35 in the good ol' days). And sometimes it costs less for me to call the vendor directly then throught the home warranty company and I save the annual fee. I've heard some clients complain that they denied the claims for replacement for one reason or another.
I've saved thousands of dollars between couple rental properties over a few years NOT getting the Home Warranty.
Home warranty call fees have increased to $55-65 no matter the reason for the call (they were $35 in the good ol' days). And sometimes it costs less for me to call the vendor directly then throught the home warranty company and I save the annual fee. I've heard some clients complain that they denied the claims for replacement for one reason or another.
I've saved thousands of dollars between couple rental properties over a few years NOT getting the Home Warranty.
- ProfessorBaron
- Contributions:303
Home warranty companies consistently rank as the top worst in customer service companies. Many will fight you on every item. So make sure it is worth the cost!
- S. Chris Webb, "PHX AZ RE BROKER"
- Contributions:411
I agree with Mya, it depends on the buyer and the home. We own several rental homes, and quit buying home warranties because their deductible has become prohibitively expensive ($60 to come out and fix a $35 part?) and they do not replace non-working items, they only repair them until they are no longer repairable. Then some of them go as far as have a "pre-existing condition" clause (if it's old it's already determined to have a pre-existing condition). We had an HVAC unit they kept "fixing" for $60 a pop until it just wouldn't work any more at all, then we were out of luck because they said it was pre-existing. If you do get a home warranty, do a little, no, a LOT of research on the company first.
I agree with Chris above. The deductibles have crept up, along with weasel clauses that let them out of paying for big ticket items do you really want to pay $75 to fix an old dishwasher when a brand new one is only a few hundred dollars? I prefer to bite the bullet, and simplynreplace things as they break with good quality ones that will last a Long time anyways.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
See, I really like certain Home Warranty Companies. There are a lot of them out there but I only use three companies, because I know that they deliver results for my clients.
When I list a house, I encourage my client to offer a home warranty, it makes the buyer feel 'safer' coming in.
When I list a house, I encourage my client to offer a home warranty, it makes the buyer feel 'safer' coming in.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
Re Home Warranites
@Mya, I agree, however my home is leased and is in another state, its like having a management company.
I think getting one on a new home is silly.
Yes to Older homes and I love the fact that my sellers can put it on their home and have it there and not pay for it until closing but can use it. Home Warranties fill a need.
@Mya, I agree, however my home is leased and is in another state, its like having a management company.
I think getting one on a new home is silly.
Yes to Older homes and I love the fact that my sellers can put it on their home and have it there and not pay for it until closing but can use it. Home Warranties fill a need.
- Jim Zeck, "Jim Zeck"
- Contributions:13
A Home Warranty is always a great tool for a seller to purchase as a perk for getting their home sold!
- Arbi Baghoomian, "soldbyarbi"
- Contributions:4
Home warranties are a fabulous weapon to carry throughout home ownership. I always request a home warranty for all clients from the seller. If you're purchasing a property with older appliances, I strongly recommend a home warranty..it comes to about $30-$40 a month and goes a long way. If your AC/Heating needs replacement, this will easily cost you upwards of $6,000..but with the policy, it'll end up costing you only the deductible..usually $50.
Hope the info helps
Hope the info helps
- lakesearcher2
- Contributions:13
I was pretty surprised when my home warranty only covered $500 when my hot water heater failed and the actual cost to replace it was closer to $1100.
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- Vikki Carter, "vcarter1"
- Contributions:10
Mya: I completely agree as in everything in life each case needs to be evaluated individually. And on your own properties it may not be cost effective however when dealing with clients and homes we are not familiar with I believe as an agent every deal should have a warranty on it whether new or old, I have seen strange things go wrong on "new" homes that the warranty would have covered had one been in place. However (as everything should be) is as you said on a case by case basis.
Professor Baron: Thank you for your comment. I was unaware of the fact that they rate so poorly. I have only experienced one client that had troubles and they appeared to be with the contractor not the warranty company.
Chris: Yes it may cost $60 to fix a $35 part but how much would the labor have been? Or would you have been able to fix it yourself? Home warranties are not suitable for every situation however they definitely serve a purpose. I have not experienced the situation of pre-existing conditions with any situation to this point but I have read in the contract with the company I use in particular that their policy is to repair if possible then replace.
Roberto: Yes a new appliance may only be a few hundred dollars more depending on your location however putting yourself in a new home owners position who has just depleted their funds, I believe 60 or 75dollars would look a bit more attractive than the 200+ to buy new right at that moment. If the money is available then by all means we would all rather have a new one.
Sharon: I agree completely about them being like a property manager. It is a convenient call for the tenant to make and take care of things quickly when you can not be right there.
Jim: I agree about it being a great tool to help with a sale. I just had a deal that would not have even been considered had it not been for the warranty. It gives the buyer a little more protection especially if you explain that it is to work hand in hand with their home owners insurance policy.
lakesearcher: No policy will cover everything.. This is why it is suggested you read and be familiar with the coverage.
Professor Baron: Thank you for your comment. I was unaware of the fact that they rate so poorly. I have only experienced one client that had troubles and they appeared to be with the contractor not the warranty company.
Chris: Yes it may cost $60 to fix a $35 part but how much would the labor have been? Or would you have been able to fix it yourself? Home warranties are not suitable for every situation however they definitely serve a purpose. I have not experienced the situation of pre-existing conditions with any situation to this point but I have read in the contract with the company I use in particular that their policy is to repair if possible then replace.
Roberto: Yes a new appliance may only be a few hundred dollars more depending on your location however putting yourself in a new home owners position who has just depleted their funds, I believe 60 or 75dollars would look a bit more attractive than the 200+ to buy new right at that moment. If the money is available then by all means we would all rather have a new one.
Sharon: I agree completely about them being like a property manager. It is a convenient call for the tenant to make and take care of things quickly when you can not be right there.
Jim: I agree about it being a great tool to help with a sale. I just had a deal that would not have even been considered had it not been for the warranty. It gives the buyer a little more protection especially if you explain that it is to work hand in hand with their home owners insurance policy.
lakesearcher: No policy will cover everything.. This is why it is suggested you read and be familiar with the coverage.
- Nicholas Ribeiro, "NicholasRibeiro"
- Contributions:1807
Every buyer should get one!
- P_Guthmiller
- Contributions:12
Boy, I don't know. Seems like you'd be better off keeping the money yourself and putting it aside for a rainy day. They price these policies to make sure that they always pay out less than they take in in premiums.
- Vikki Carter, "vcarter1"
- Contributions:10
P_Guthmiller:
The company I use generally is around $300.00. One visit from a plumber or electrician just to walk in the door in our location generally is around $185.00. The cost of buying a new appliance can be well over the $300.00. Guess it depends on what you are looking for. Like any insurance you hope you don't need it but I have found that if you do it really helps. But most definitely a good idea about putting money aside for the rainy day.
The company I use generally is around $300.00. One visit from a plumber or electrician just to walk in the door in our location generally is around $185.00. The cost of buying a new appliance can be well over the $300.00. Guess it depends on what you are looking for. Like any insurance you hope you don't need it but I have found that if you do it really helps. But most definitely a good idea about putting money aside for the rainy day.
Home Warranties
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- 4.3/5.0
- (5 reviews)
Contributions:10I have become a true believer in home warranties. Home Warranties run around $300.00-$400.00 per year and can more than pay for themselves with just a couple of uses. They generally cover Electrical, Plumbing and now also cover appliances among other items. I experienced warranties first hand with a client of mine who has a rental property, her home and a second home in Arizona. She obtained a warranty on the rental and has used it 5 times in 2 years, (a huge savings on repairs). She chose not to obtain a warranty on her place in Arizona and over the same 2 year period has needed to replace every appliance in her home, (covered by the warranty if it had been purchased). Her primary residence although it had a warranty in place has not needed it (the ideal circumstance). I purchase a home warranty for every transaction I am involved in. This helps protect the seller as well as gives the buyer piece of mind with their purchase.
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