Home Warranty ???
Curious... IF anyone has dealt with Home warranty programs??? I'm debating whether to use them to add value when selling a home??? Just want to know if it's worth buying ???
What do those warranty programs run??? $400 - $500???
thanks alot
On a SFR, a home warrantee program costs about $350 (in CA anyway). In general, if you are unsure of a home (a good property inspection will help), you might want to spring for the insurance particularly if you are dealing with older systems or appliances. There is a fee for every service call ($35/$45). In several cases (where a heater or major appliance went out) , the warrantee has paid for itself. Make sure you go with a good company as some warrantee plans are better than others and check the fine print as to the limitations. A home warrantee plan does not cover everything, but it provides a little bit of security should something major go wrong.
Best of luck with your purchase!
Hi,
I have dealt with them good and bad. they give a certain peace of mind if your property is older. However, they don't like to pay out and use the excuse that it was a pre existing condition or something wasn't installed properly so it nullifies the warranty. Don't believe them and take them to small claims court as it is a tactic they use not to pay. All in all they can be very good for older properties if you are tough with them. I learned this after the fact and wish I had known more when I had the expensive repair as they would have been made to pay in small claims. Too late for me now.
I bought an REO to rehab in a smaller town. I think the home warranty may have helped the house sell, as "everyone knew" the house and the previous owners. I even got a few earfulls of the divorce proceedings in addition to all the stories of what used to go on.
Ron
One other problem -- they love to double bill for the service calls. If you pay the serviceman when he's making the call make sure to get a receipt as I can almost guarantee you'll get a bill from the home warranttee company as well.
Get referrals on the home warrantee company you are thinking about going with as there are nightmare stories.
They usually run $300-$350 for one year for the basic plan. Thenm there's add-ons e.g. pool: $150, washer/dryer:$75, etc. A service call usually runs about $30-$35/per call. It gives the buyer some added peace of mind when they purchase.
A purchaser should always get a building inspection and a seller should never discourage that inspection.
Where I live, Home Warranties are almost always required in the sales agreement when using a Realtor.
I have used warranty programs on both ends of a transaction. It really depends on the rep in your area. Here, in PA, warranties are very common, and a good selling point. The same warranty company can have different reps in different cities. For instance, I live and work mostly in Harrisburg, Pa. The warranty company here is wonderful, and will cover just about anything. But, when I used the same company in a different city I had problems. I'd say if it makes your buyer more comfortable, pay for it .
Maybe everyone should mention the name of the Home Warranty Company they are talking about. I used American Home Shield and never had a problem. (Of course, I didn't have anything major go wrong either).
I am actually in the market for a home warranty for the rental I just bought today. It just makes sense. Particularly for the 1st year while you "get to know" the house. Suggestions (by name)?
JohnCl