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A Home Warranty Plan – A Safety Net That Comes In Handy

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Real Estate Broker/Owner with Kolsky Realty & Management 01311273

 

A Home Warranty Plan – A Safety Net That Comes In Handy

 

 

 

Those of you thinking about buying a home need to know about a repair and maintenance safety net called "a one-year home warranty plan."

 

Many first-time home buyers don’t even know what a one-year home warranty plan is. As renters, when the water heater breaks or the heater stops working they instinctively call the landlord to fix the problem. But what do you do when your water heater breaks, and there’s no landlord to call?

 

For homeowners, the next best thing to calling a landlord when there’s a needed repair is having a one-year home warranty plan.

 

So what is a one-year home warranty plan?

 

A home warranty plan is similar to insurance or the extended warranty that you can purchase when buying a TV or smartphone but instead it is for your home. When you purchase a one-year home warranty plan, it covers the costs of repairing or replacing most all malfunctioning system and appliances in your home. The cost of a typical home warranty plan generally runs anywhere between $250 and $950.

 

What’s the benefit of a one-year home warranty plan?

 

When the water heater break, your stove isn’t working and or something in your home stops working, forget about calling around to get estimates for repairs when a problem occurs. You can also forget about paying out of pocket to get the issue resolved or replaced.

 

Instead, all you have to do is make a simple call to your home warranty provider. The warranty company takes care of it all. The warranty company calls the appropriate professional with whom it has made arrangements, and wallah they send the appropriate tradesman to fix the problem, if possible (and or) replace the malfunctioning system with a brand new one. The initial cost of your home warranty premium covers the costs — with the exception of a small co-pay (usually around $50) per incident.

 

Another way to look at it – it takes just one costly and unexpected system failure (and the drama associated with it) to realize the potential savings of a one-year home warranty.

 

Who should buy a one-year home warranty?

 

One-year home warranties aren’t limited to first-time home buyers. Any homeowner of any age home can purchase a one-year home warranty at any time. Although, one-year home warranties are particularly great for first-time home buyers who’ve been renters until now. First-time homebuyers are used to calling the landlord whenever there’s a problem, and a one-year home warranty plan is the next best thing to having a landlord to call.

 

One-year home warranties are also great for investors/landlords. Usually, they don’t care for fielding repair calls from their tenants nor do they have a network of repair folks. By having a one-year home warranty plan, investors/landlords can cut right to the chase, keep tenants happy, and minimize the expense and stress.

 

The truth of the matter is – many appliances and home systems start to break down after 10/20 years, and the last thing any homeowner/investor/landlord wants is to deal with failing appliances or home systems falling apart, especially at the same time.

 

Bottom line – a one-year home warranty plan is not only a great safety net that comes in handy it also can save homeowners/investors/landlords a lot of time, money and stress — particularly (but not limited to) the first year of ownership/investment.

 

 

 

Comments(17)

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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Hi Jon... I'm a big believer in home warranties and "slap them" on my listings and ask for them for my buyers. I've made excellent use of my own warranty on my house over the past few years--2 new A/C units, a new $3,000 advantium microwave, and other miscellaneous repairs that saved me hundreds.

May 09, 2017 11:28 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Nina Hollander ~ I continually renew my one-year home warranty plan, and I love the safety net it provides. And I do the same with my listings. I make sure the seller provides a one-year home warranty to the buyer and I also make sure all buyers I represent have the safety net of a one-year home warranty, as well

May 09, 2017 11:37 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Hi Jon... the minute my house turned 8 years old I put a warranty on it and three months later needed a new a/c, which it covered for $100. I also renew annually.

May 09, 2017 11:56 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Jon

Home warranties can be a great benefit for buyers, at least in many situations. I always discuss these with buyers and they are requested as part of the offer, paid for by the sellers, which is pretty standard protocol in my area. Some buyers renew them themselves after 1 year, some don't.

Jeff

May 09, 2017 12:12 PM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Nina Hollander ~ it seems like there's always something that needs repair or replacing. About a year ago my pool heater went out and I needed a new pool heater, boy was I thankful I had my home warranty in force

Jeff Dowler ~ I do the same for my buyers and there is little (if any) resistance from sellers. Pretty much standard protocol in my area, too  

May 09, 2017 12:51 PM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Jon,  I try to have a home warranty thrown in on all my deal.  They are a safely net.

May 09, 2017 02:13 PM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hello Jon.  Our agents often put home warranties on their listings - and these have saved our sellers money when unexpected repairs show up. 1/2 hour ago I was helping a newer agent with a home warranty on a sale. Great tools! 

May 09, 2017 04:20 PM
Anna "Banana" Kruchten
Retired Broker/Owner - Phoenix, AZ
602-380-4886

John great explanation of home warranties. We use them almost all the time on most type of buyers and it's such a good thing to have - but especially for 1st time buyers who might be short on  budget because they put all their money into getting into their home.

May 09, 2017 04:31 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I'm a big fan of home warranties.  I use them in most of my sales!

May 09, 2017 04:50 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Jon, on having this blog FEATURED in the Old Farts Club group!    

 

May 09, 2017 04:51 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Jon- a Home Warranty is an excellent safety net for those OOPS moments.  Our friends had one in a home they moved into and even with a home inspection, something happened shortly after they moved in.  The warranty took care of it. 

May 09, 2017 06:29 PM
Janice Zaltman
United Realty Group - Boca Raton, FL
Energy Efficient And Eco-Friendly Homes in Florida

I'm glad that many have had success with home warranties. I have found that the companies here limit it to appliances and have many stipulations that many times don't make it cost effective for buyers or sellers to offer. 

May 09, 2017 07:27 PM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Will Hamm ~ I agree and I do the same... It just make sense and provides a comfort that all buyers should have

Lynnea Miller ~ it is a great tool that offers buyers a solid year of confidence and protection

May 10, 2017 09:51 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Anna Banana Kruchten, CRS ~ thank you! I agree this helps all buyers feel secure in that the home isn't going to be an unforeseen money-pit

Myrl Jeffcoat ~ I am a big fan, too! And I always recommend it being accommodated for my buyers... And thanks for the feature in OFC, I really appreciate it 

May 10, 2017 09:55 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Kathy Streib ~ it happens all the time, and that's why buyers should be aware of a one-year home warranty and have a home warranty plan

Janice Hope Zaltman LEED AP ~ it would be great to hear and know about any and all companies that have stipulations making their home warranty plans non-cost effective. In CA, I haven't found that to be the case

May 10, 2017 10:00 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Jon, they can be Ok but not always. We had one on our house from one of the nationally respected companies. The price we could get on our own was lower than what they offered on ours after depreciating the HVAC. Sometimes it isn't the best choice.

May 10, 2017 10:55 AM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Joe Pryor ~ sorry to hear that! I guess the moral is "not always" even though I've only experienced it to be a great safety net

May 10, 2017 01:16 PM