Examining what home warranties are and whether or not they’re worth it.
Today, we’re answering two questions: What’s a home warranty? And is it worth the money?
A home warranty is something you can get while owning a home—though most people get them around the time they close on a house—that's sort of a mini insurance policy. They cover things like appliances, furnaces, and air conditioners. You can even get an add-on to cover problems with your good pump or septic system.
It might bring you peace of mind when you’re in the process of moving and have expenses like furniture, window coverings, and other moving expenses. You’ll rest easier knowing that you’ll have some help covering unforeseen events.
“It might offer a piece of mind when you’re in the process of moving.”
However, is getting a home warranty worth it? Well, it’s kind of a numbers game and depends on whether you’ll use the benefits or not. So it’s really up to you and your risk tolerance.
I've also seen warranties used as a bargaining chip. A seller can offer a home warranty to a buyer, which might make the buyer feel better about the furnace or appliances being older. It might let the buyer move forward with a little more confidence. In the past couple of months, when it was an extreme seller's market, I also saw buyers offering home warranties to sellers.
Home warranties are definitely something to think about. Once again, it comes down to your personal situation as to whether or not it’s something you want to spend your money on. If you have any real estate questions or would like to discuss this further, feel free to call or email me. I’d love to talk to you.
