Wednesday, May 17, 2006
What do you mean "it broke"?
Let's face it, a home consists of thousands upon thousands of parts and pieces and any of of those could fail at any time. So is it worth the money to purchase a home warranty?
Buyers often contemplate if a home warranty is a good move or just a sales pitch. I really do understand. I hate everytime I go to buy something at the store and I am asked if I want a warranty with this or that. I recently rented a video for $1 and they then asked me if I wanted a warranty on it for .25 more. You have got to be kidding me! But with a home it is something you might consider.
Home warranties come in different packages and sizes. Make sure you read the policy carefully to understand what it does and does not cover, but for the most part they cover all of the mechanical items in the home. Most do not cover roof or structure, but for an additional fee, they can cover a well and possibly septic system. For about $400 to $500 it really is a good value.
Remember, this is coming from a guy who hates extended warranties. But facts are facts, and most home warranty companies have over 55% of the homes they insure have a claim in the first year. Odds are, you will use it. Unlike other household items in which less than 10% result in claims. For the buyer, it provides peace of mind for that critical 1st year of home ownership, and for the seller, well, it gives the buyer peace of mind which makes them more comfortable with your home.
Check out my video podcast on this subject. You can get the video by clicking on the picture above, remember to be patient, it takes a few moments to load. Or you can easily subscribe to my video podcast series in iTunes.