Should You Consider Buying a Home Warranty?

August 13, 2012 in Buyer's Handbook, First Time Home Buyers

Sometimes a home buyer will ask me if they should consider getting a home warranty when they purchase their home.  Or sometimes the seller is offering one with the sale of their home, especially if some of the appliances or systems are not that new.  And sellers often ask their agent if they should provide it, if they want to add an extra sparkle to their house to make it more attractive to buyers.

A home warranty is different than homeowner’s insurance (which your mortgage holder will require if you’re financing the purchase).  It is simply some coverage on appliances or systems (such as heating or plumbing) in case they break down.  It is much less expensive to buy when you are doing so right at closing, and it is renewable every year if you wish.  What is it, what exactly are the benefits, and do you really need it?

Whether you are buying a home in Seattle or the Eastside, unless the appliances and systems are brand new, consider what a home warranty will provide for you.  Buying a home is so complex that this relatively minor issue can get swept under the carpet, yet it can save you money and trouble later.  There is no one answer as different companies offer them.  Each package is slightly different in cost and what is covered, here are some links to check out some of the the different home warranties offered:

Home Warranty of America

Fidelity National Home Warranty

American Home Shield

I also want to add that Joe’s Plumbing Company is rated a pure 5 stars on Yelp with 30 reviews (Seattle).  I have not known anyone who used them personally but please let me know if you try them… I will do so too if I ever have a plumbing need and post back here.