Benefits of a Home Warranty...

By
Real Estate Agent with Liz Moore & Associates

First of all, I am not a representative with a home warranty company so I am not an expert on the subject, but I do see their value and think consumers need to know more about them. 

I had a Facebook friend contact me earlier this week because she knows I am in real estate and wanted to know if I could recommend a home warranty. Um, YES! 

Once we got on the phone, she further explained that she and her husband recently built a house (kudos to them) and they got a "department store" warranty on the appliances, but had no warranty on the other systems throughout the property and figured it was smarter to get a home warranty. 

Well she was definitely right. Basically the way a comprehensive warranty works is that you pay a base price which covers most appliances and systems in the property. When you need to call in a claim, you pay a trade fee and the contractor repairs or replaces the item. The more you pay for the base price, the lower the trade fee so it works very similar to insurance and deductibles in that regard. They are usually for year and then you just renew them annually from there. 

Home warranties can be a great value and I suggest them for all buyers, especially first time home buyers - click here if you are interested in more information from a home warranty representative.

I specialize in assisting sellers and buyers with their real estate needs in Virginia Peninsula Virginia, including Hampton, Newport News, York County and surrounding areas.(757) 739-2003

Comments (4)

Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Blessed Realtor - ABR, CRS

Kaera ~ Not only are they great for clients... they are also a great risk management tool.  In our area, if either party purchases one from First American/Cres, they will eliminate the E/O deductible if anything ever goes to court.  Great protection for the Agent!

Apr 16, 2011 04:16 PM
Kaera Mims
Liz Moore & Associates - Fort Monroe, VA
Associate Broker, e-PRO, REALTOR; Hampton, Newport News, York Co.

@Melinda: yes ma'am, you are so true. That is why we require them of our landlords for the properties we manage :-)!

Apr 16, 2011 04:20 PM
Raine Carraway
Lenoir, NC

Kaera, I agree that home warranties are important to have. What sold me was another agent I worked with. She sold a home and their heat pump went out over the weekend, days after it closed, in 90+ degree weather. The homeonwers called her, she called the warranty rep, and they had someone out the same day to cover what would have been a $3,000+ repair.

Apr 17, 2011 05:56 PM
Kaera Mims
Liz Moore & Associates - Fort Monroe, VA
Associate Broker, e-PRO, REALTOR; Hampton, Newport News, York Co.

You know what, I had a very similar situation and that is always 'my story' when buyers ask about whether to get one or not. Totally their decision, but definitely suggested!

Apr 21, 2011 04:59 PM