Your offer has been accepted... So, now what? Part V (Home Warranties)

Home Warranties.  What are they?  For approximately $400/year (for single family homes... less for condos/coops) you are covered (usually for a nominal service fee) in the event that one of your appliances or HVAC fails.  Some of the policies even cover roofing and/or swimming pools.  In theory, they either repair it or replace it.  As a new homeowner, already stretched by your new mortgage, this can be a real lifesaver.

Who pays for it?  Depends.  In these trying times some sellers will offer up a one-year home warranty as an enticement.  If, during your inspection, a few items are revealed to be at the end of their life cycle (but still working) this might be something you ask for from the seller- either in the contract or as part of your home inspection negotiations.  Or, you can buy it yourself.

Why get a home warranty?  I can't help but think of my poor neighbors who within the first year of owning their house had to replace the washer, the dryer, the AC and the water heater.  A warranty would have saved them a bundle.  Hindsight is golden.  But like all insurance, it's painful to pay if you don't ever get a chance to use it. 

Part I of "Your offer has been accepted... So, now what?"  tackles home inspections and how they might play out in your home purchase scenario. 

Part II discusses financing and what to expect.  

Part III deals with settlement attorneys, and

Part IV covers title insurance.

Coming soon... Be on the lookout for "Your offer has been accepted... So, now what? Part VI" which will discuss final walk throughs.