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Home Warranty: Your Opinion Please

By
Industry Observer with Paul D. Diaz, EA, MBA BK 602473

This came out in The Miami Herald:

Commentary: What’s the most likely thing a home warranty will guarantee for you? Headaches

In a recent — and unusually puffy — puff piece in a pay-to-play real estate publication, two agents sang the praises of home warranties. But in truth, home warranties are not warranties at all. They’re service contracts. And if you’re considering buying a house that comes with one, you’re likely better off asking the seller to credit you with the warranty cost at settlement. [Source: Miami Herald]

I found the story in Yahoo! with no paywall. Here is the link: https://news.yahoo.com/most-likely-thing-home-warranty-103000065.html

I have suggested Home Warranties in the past. I have used home warranties myself and found them to be worthwhile. I replaced a $1300 water heater with just the copay. Full disclosure, I had a dryer that kept malfunctioning, and there was a trade call every time they came out. They would have to come out every few weeks and do something else. I was better off buying an inexpensive new dryer at Home Depot vs. the constant fixing. 

But I would like to get your thoughts. 

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Roy Kelley
Retired - Gaithersburg, MD

Opinions are widely varied on this topic. It is nice when a home seller offers a home warranty as part of the package.

Apr 17, 2023 08:34 AM