Are Home Warranties Worth It?
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As multiple offers become more and more common many buyers are trying to make their offers stand out. One way of doing this is not asking the seller to pay for a home warranty for the buyer. This may lead the buyer to pay for a home warranty themselves or question not getting one all together, which begs the question… Are Home Warranties Worth It?
Home warranties like any other warranty are designed to take on some of the risk, in this case common home items being covered. For many years they have been almost standard that a seller pay for one for a year for the buyer at closing. Now sellers are not having to do this because of the very high competitive atmosphere we are in.
It depends if the warranty would benefit a buyer or give them the piece of mind they would like. First time home buyers who plan on living at the property may view it as a safety net and would opt to buy one, even if they had to pay for it.
An investor purchasing a rental property may opt to not purchase one, instead self insuring. Let’s keep in mind an investor would be more likely to have the funds to self insure and take that risk. The investor would also be more likely to have experience fixing some of the common items covered by a home warranty.
Or you are a past home owner with experience and don’t mind taking the risk. You might be handy or have contacts who could help you if something needed attention at your new home. For me personally I don’t have one and that is because I fall in the second category of someone who is willing to take the risk, familiar with fixing some of the covered items and I am an experienced home owner.
Just keep in mind what your comfort level is, as it is not the same for everyone. Would you sleep better at night knowing you have a policy in place or do you prefer to save the money and take care of any issues yourself. The answer is different for all of us and evaluating where you stand is my best advise.
With the heart of a teacher my goal is to educate my clients so they can make informed decisions. Education is empowering, also an informed consumer is less likely to be taken advantage of in the future.
Have questions about this or other topics, don not hesitate to contact me.
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Luis Cuevas, Realtor®
RE/MAX Cross Country
1990 Justin Road
Highland Village, Texas 75077
(214) 783-0535
Luis@MakeNorthTexasHome.com
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