When you purchase a home, the seller may provide a home warranty to cover major appliances and/or systems, or you may be given the option to buy one. This gives you, the buyer, peace of mind that if and when there is an issue in the home, you will pay a discounted price for repair and replacement services. As part of the warranty, there will also be a designated provider who will address everything from appliances, plumbing, electrical and more!
Here are 3 things to consider before obtaining a home warranty:
#1
Understand the fine print and terms.
Home warranty companies are in the business of making money so there are a number of items they may not cover. There also might be specific terms outlining actions you must do on your end in order to gain coverage or qualify for repairs.
#2
Not all home warranty companies are the same.
When you Google “home warranty companies,” you will notice many have not opted in to receive reviews or ratings. Do your research and ask your real estate agent who they recommend. Top agents will only refer the best and if their preferred vendor is not taking care of their clients, then they will be removed immediately from their recommended vendor list.
#3
Watch out for unethical or hardball tactics.
Recently we had a client call us to discuss an issue they were having with their home warranty company. The provider was claiming that our clients needed to pay $2,000 out-of-pocket for an air conditioner repair.
We advised our clients to call one of our trusted HVAC technicians. Sure enough, the repair was less than $500 and our clients ended up saving $1,500 by NOT using their home warranty company.
Our Take
So, is a home warranty worth it? Yes and no.
For those who are on a tight budget and want to try to mitigate future big-ticket repairs, then a home warranty can be a great option. Just make sure you understand the coverage and read the fine print.
For those who can afford taking on future repairs, then we would suggest that you do not purchase a home warranty and here is why. Home warranty companies, even the best of them, typically will do the bare minimum to make repairs and/or or they will provide low-end replacement systems and appliances.
One of the many benefits of our partnerships with the largest real estate company in Metro Atlanta, Keller Williams, and our specific office, Keller Williams North Atlanta, is that we have some incredible affiliated partners. We do not always recommend our affiliated partners to our clients but in this case, we highly recommend 2-10 Home Buyers Warranty. We have a dedicated contact with 2-10 who always supports our clients if there is an issue.
If you would like to reach out to our rep to discuss a home warranty, her information is below.
Kelly Lukenda
Account Executive
Direct: 404.992.2655
Email: klukenda@2-10.com
Robin Martin & Associates is here to help with all of your real estate needs, please reach out to us if you have any questions regarding buying or selling!