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Home Warranty - Do I Really Need One?

By
Real Estate Agent with CENTURY 21 Beal, Inc.

Do you really need a home warranty? OK it isn't really a home warranty. It is a Home Protection Plan. They can't call it a warranty because they aren't really giving a warranty on everything - they are just helping with some things... Legal Issues require strange wording. I have a warranty on my car and insurance too... But, do you need to purchase a Home Protection Plan for your home when you purchase? Is it really worth it? YES YES YES.

Do you buy insurance in case your home burns? Do you buy insurance to cover the title to your home? Consider insurance for the components of your home too! When most people purchase a home they are using a large portion of their savings. And, moving into a new home is always more expensive than you think. There are always more things you need and want for the new home. The last thing you want is an unexpected repair!

"A home protection plan is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances" says American Home Shield. They are available for new construction homes, single family homes, condos, townhomes, foreclosures, vacation homes and duplexes, triplexes and fourplexes.

Most plans last for one year from the date of purchase. The goal is to avoid high repair and replacement costs of items like air conditioners, appliances, main electrical panels, plumbing and pool systems right after you purchase a new home. A Home Protection Plan will help with that!

The best part of a Home Protection Plan from American Home Shield (through your Century 21 Beal agent) in 2010 is that the SELLER can purchase inexpensive coverage too. Imagine...

  1. Deciding to put your house on the market for sale
  2. Hiring a Century 21 Beal real estate agent
  3. Deciding to put the American Home Shield plan on your property
  4. Having the Century 21 Beal agent bring a great offer
  5. Waiting while the buyer gets inspections
  6. Oh no the buyer finds out there is a problem with the a/c, the stove or the the house has termites...
  7. No problem! You have a Home Protection Plan and many of the items needing repairs will be covered!
  8. Getting the house SOLD! Now when you are ready to put your house on the market for sale remember to ask your agent for the Home Protection Plan that covers the Seller TOO!!!

 Susan Hilton College Station Real Estate Susan Hilton Century 21 Beal, Inc. 979-764-2100

Original post on SusanHilton.com

Curt Baumgarth
Mesa, AZ
inactive

I agree, the "warranty" is an important part of the home buying process for all buyers.  thanks

Nov 25, 2010 02:14 PM
Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

I have had a warranty save the day this year but I still am on both sides of the fence when presenting them to sellers.

Nov 25, 2010 02:21 PM
Susan Hilton
CENTURY 21 Beal, Inc. - College Station, TX
Texas Aggie Real Estate, College Station Bryan Texas Real Estate

Jay - Anytime possible I talk with the seller about getting a warranty on the house while they have it on the market. This sure helps with termite issues or repairs.

Nov 25, 2010 02:32 PM
Ellie Shorb
Compass Real Estate - Chevy Chase, MD
Realtor DC, MD & VA Luxury Home Expert

I have used home warranties for sellers on many occasions and love that the AHS warranty protects the seller's home while it is being marketed and then transfers to the buyer at settlement. The buyer can add additional coverage too. I've had it save the day- it also lowers anxiety, esp. for first time buyers concerned with future repairs. 

Nov 25, 2010 03:45 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Susan, I always tell my buyers about AHS - and it's good for sellers, too! It is a MUST for first time home buyers, I'd say!

Nov 25, 2010 06:55 PM