Home warranties

By
Real Estate Agent with Ramagli GMAC

What is the prevailing opinion on home warranties? You guys think they're worth it? I know there's some people who think they're a good thing. I also know some people who think they're basically worthless, cause they say they don't cover everything that they say they will. I think it can be a good marketing tool by offering a home warranty, but whether the actual warranty is worth it...I can see both sides of the argument and I'm not sure myself. What's everyones opinion?

Comments (6)

Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

It is a good marketing tool, and I tell buyers to get one and for sellers to provide one... especially first timers.  But, they should never carry them past the initial term, they just aren't worth it after that. 

Jun 25, 2008 04:03 PM
Lisa Marie Flenoury
"Lisa The Broker" - Playa Vista, CA
"Lisa The Broker" - Making Dreams Come True

I am a true supporter of Home Warranty policies, so much that I purchaseone for my listings (its like $0.13 per day) I think it is worth the money and that 1 claim alone pays the insurance premium alone.  Ive been working with Diana at Old Republic for the past 4 years and she is great! 

Jun 25, 2008 04:03 PM
Lorrie Semler, REALTORĀ® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

After an experience with a vacant listing where the seller didn't want a policy with seller's coverage, I now STRONGLY encourage all sellers to get one.  If that stubborn seller hadn't refused, the problems with the HVAC that were discovered during the inspection would have been covered.  I love the companies that cover unknown pre-existing.

Jun 25, 2008 04:09 PM
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

I've had five occasions where a home warranty on a listing might have paid off BIG TIME. Two involved storm damage (I'm not sure that would have been covered, as items covered by a regular insurance company are exempted, I believe.) The other three involved water damage from plumbing problems (then again, that might have been exempted, too). In none of the cases did the listing have coverage.

I'd like to know other agents' experience with these policies actually paying.

Jun 25, 2008 04:17 PM
Crystal Ledbetter
Texas Home Group - Montgomery, TX

I encourage the purchase of a home warranty and include it with all listing, it cost my seller nothing till it closing and protects even a vacant house,  for buyers I ask that the seller provide one. It is well worth the cost. recently, I had a home that closed and the hot water heater went out two days after the new home owner moved in, the home warranty paid for the replacement of the hot water heater at a cost to my clients of $50.00. My clients were happy that I insisted the sellers provide this policy for them                    I reccomend and use Fidelity National Home Warranty.

Jun 25, 2008 04:35 PM
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

Lisa,

13 cents a day sounded really good to me until I did the math. 13 cents X 22 listings X 30 days = $85,80 per month or over $1,000 per year. I don't think I'll be paying for those warranties myself.

Liz

Jun 28, 2008 04:55 PM