Buying a Home? Here’s Why a Home Warranty Should Be in the Deal
By Ben Carter
Buying a Home? Here’s Why a Home Warranty Should Be in the Deal
The home buying process is an exhilarating but often overwhelming journey. Between the inspections, negotiations, and mountains of paperwork, it's easy to overlook smaller details that can have a big impact. One of the most valuable, yet sometimes forgotten, negotiation tools for a home buyer is a home warranty. Securing one as part of your purchase agreement can provide a crucial financial safety net during your first year of homeownership, protecting you from the stress of unexpected and costly repairs.
What Exactly is a Home Warranty?
First, let's clarify what a home warranty is not: it is not homeowner's insurance. While insurance covers loss from events like fire, theft, or natural disasters, a home warranty is a service contract that covers the repair or replacement of major home systems and appliances that fail due to normal wear and tear. Think of your heating and cooling systems, plumbing, electrical, refrigerator, oven, and dishwasher. When a covered item breaks down, you simply file a claim with the warranty company, pay a predetermined service fee, and they dispatch a qualified technician to handle the problem.
The Buyer's Advantage: Why You Should Ask for One
For home buyers, the benefits are significant. After making what is likely the largest purchase of your life, your budget can be tight. A home warranty acts as a buffer against unforeseen expenses. An aging water heater or a finicky air conditioner could fail without warning, leading to repair bills costing hundreds or even thousands of dollars. With a warranty, your financial exposure is limited to the cost of the service call fee. This provides invaluable peace of mind, allowing you to settle into your new home without the looming fear of a major system or appliance failure draining your savings.
How to Negotiate a Home Warranty into Your Offer
Asking for a seller-paid home warranty for the first year is a common and reasonable request in real estate transactions. Many sellers are willing to include it as a sales incentive, as it demonstrates good faith and makes their property more appealing. You can simply include this request as a contingency in your initial purchase offer. Your real estate agent can advise you on the best way to phrase it. In a competitive market, even if the seller declines, purchasing one yourself is a wise investment. The annual premium is a small price to pay for the comprehensive protection it offers.
Choosing the Right Plan: Let Consumer's Best Help
Not all home warranty plans are created equal. Coverage levels, service fees, and claim processes can vary widely between providers. Whether the seller is paying or you're buying it yourself, it's essential to ensure you're getting a high-quality plan from a reputable company. That's where we come in. At Consumer's Best, our experts have rigorously reviewed and compared the top home warranty companies to help you make an informed decision. By exploring our in-depth reviews, you can confidently select a plan that provides the best value and protection for your new home.
