Should You Get a Home Warranty for Your First Home?
Homeownership is no walk in the park, especially when you’re a first-time homebuyer. On top of a mortgage, maintenance bills, HSA, and homeowners insurance, do you really need to pay extra money for a home warranty?
If you’re wondering whether or not you should get a warranty on your new home, we’re here to help you decide for yourself.
What is a Home Warranty?
A home warranty is when a homeowner pays a warranty company an annual or monthly fee to receive discounts or coverage on repairs if anything goes wrong. This is not the same as home insurance, where disasters like fires or crime are covered. Instead, a home warranty helps cover the cost of appliances, home systems, and expensive electronics.
Home warranties cover items like:
- Washer and dryer
- Home entertainment center
- Electrical system
- Plumbing system
- Water heater
- HVAC system
Often, warranty companies provide full-house or partial-home coverage, which can get expensive if a new homeowner isn’t in a place financially to pay seemingly unnecessary costs.
Who Needs a Warranty on Their Home?
Anyone who wants an added layer of long-term financial protection can use a home warranty. Think of it this way: if your new home— which you invested a major down payment into— suddenly experiences electrical damages, it could end up costing you thousands of dollars out of pocket.
With a home warranty, you pay a smaller fee to ensure the warranty company helps you cover the repairs. Also, when you need to find a reputable electrical company to come fix your house, warranty companies usually have a list of trusted providers in your area.
Unless you feel comfortable eating the cost of potential repairs or appliance replacements in a house you buy, a home warranty is a smart option.
What Type of Home Warranty is Best?
Different home warranty companies offer different types of coverage. Some only offer complete home warranties to homeowners. Others offer warranties to homebuyers who are concerned about potential equipment or system issues upon purchasing the home.
You should find a home warranty that meets your needs and covers the items you most want to protect.
What to Know Before Buying a Home Waranty
Here are a few tips if you’re trying to find a home warranty that’s right for you:
- Always ask what the warranty covers, and how the company goes about repairing or replacing items.
- Read the terms and conditions carefully, as some companies include hidden fees that surprised homeowners later on.
- If your home is equipped with all new appliances, you might be able to find a warranty that only covers home systems.
- Learn about any limitations or pay-out agreements in your plan.
- Warranty costs may vary depending on the location, size, and age of the home.
If you’re overwhelmed with expensive warranty plans or confusing contract agreements, don’t worry. There are warranty companies that cater to new home buyers like you.
Are Home Warranties Worth It?
Getting the coverage your home needs is always worth it if you can’t afford to pay for large repairs. Accidents happen, home items get old, and home maintenance is necessary for any homeowner.
Getting a warranty that suits your needs is your best option. For this reason, Elite Home Warranty offers appliance, system, and even custom warranties to give you the coverage that gives you peace of mind. To get a free quote for your home today, reach out to the Elite team.
Home Warranties in Competitive Real Estate Markets
Within the past few years, the housing market has been significantly risky. More volatility in the competitive market continues to pose concerns for buyers, sellers, and agents today. Home warranties are one way that buyers and agents are attracting and closing eager buyers. In this article, we’ll explore why.
How do Home Warranties Help?
Having a home warranty can help you stand out in the competitive market. Although a warranty is not a guaranteed solution to problems that may come up during (or after) a sale, it is one way to make sure unexpected accidents will be dealt with— without breaking the bank.
Everyone involved in the real estate market today can benefit from a home warranty.
Purchasing a home with a warranty already in place provides buyers peace of mind and big savings, in case an appliance or home system were to fail before move-in.
Sellers also face mental and financial ease when they include a home warranty. Since so many closing agreements require the home to be in the same condition as when the buyer first viewed it, having to replace a sudden HVAC breakdown during escrow costs thousands of dollars. That’s not a fun situation to be in when you thought your responsibility for the home was almost over.
Real Estate Agents
Many top real estate agents know this, which is why they might show homes and include warranties during the sale. Why are so many of them latching on to this added perk? It makes them stand out.
Fewer Inspections, More Unexpected Repairs
In such a competitive market, many buyers feel tempted to skip over the time it takes to conduct a proper home inspection. This leaves a lot of grey area in knowing the real condition of the home before moving in.
Current housing statistics from the National Association of Realtors show that sales are down (as of February and March 2022). The longer a home is on the market, the more it may be prone to costly repairs. Combine that with the decrease in home inspections, and neglecting some type of home warranty may end up costing everyone.
Building Trust with Buyers
Another way home warranties help you beat the competition? It builds trust throughout all stages of a sale. People want to complete transactions between those they can trust. Home warranties make this possible between buyer and seller, agent and seller, and everyone in between.
What Type of Home Warranty is Best in Today’s Market?
Whichever side of the housing market you’re on, finding the best type of home warranty is key to keeping up with the competition. Different warranty companies provide different coverage plans and agreement terms, so it’s best to look for a plan that offers coverage for what you need.
From common home appliances to whole-home systems, Elite Home Warranty has you covered. Check out our custom home warranty plans where you can select the items you want protected, from kitchen appliances to electronics and pool equipment. Contact Elite Home Warranty today to learn more.