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People buy and sell millions of houses every year. That truth has held up even in today’s COVID economy.
As houses change hands, new homeowners are sometimes surprised to find that things they thought were functioning in homes before purchase, aren’t. That’s where a home warranty can come in handy.
Home warranties cover your house’s appliances and other key features to help you control costs that arise from unexpected adversity.
If you’re considering purchasing a home warranty or if you already have one that came with your property, keep reading. We’ll help you understand warranties a lot better!
1. Home Warranties Protect You from Bait and Switches
Most people buy home warranties the moment they take possession of a new property. The reason being that it’s not uncommon for homebuyers to get hit with bait and switch purchases.
Bait and switch purchases in the home arena refer to a house being presented in a certain condition during the sales process which doesn’t reflect a house’s real condition. Most of the possibility of being bait and switched is mitigated through home inspections.
In cases where things are missed, a Select Home Warranty can be invaluable.
2. Poor Maintenance Voids Warranties
Just because you’re armed with a home warranty doesn’t mean you’re faultless if something goes wrong with your house. Everything from your home’s heater to its plumbing requires basic maintenance on your part.
If you forgo that maintenance, you’ll forgo your warranty.
Lack of maintenance will be assessed when a warranty claims adjuster inspects the damage you’re trying to collect on.
3. Replacement Items Are Often Assigned Without Approval
When your HVAC or dishwasher goes bust and you try to collect on your warranty, there’s a chance you may get an off-brand as a replacement. You may even get a refurbished unit.
Look closely at the items outlined in your home warranty policy to better understand what to expect from the company managing your claims so you’re not caught off guard.
4. Some Buyers Get Their Warranties Paid for by Home Sellers
In competitive housing markets, home warranty costs can be shifted to sellers to entice buyers to purchase their homes. It’s not uncommon for a seller to say that they’ll cover an end-to-end warranty on a home for 1 year or more.
Assess how competitive the market is when you’re buying a house. If it’s a buyer’s market, it can’t hurt to try and squeeze a warranty out of your house’s seller.
5. Emergency Funds Are a Viable Alternative
If you can’t afford or don’t want to deal with a home warranty, consider putting money into a personal emergency fund.
By putting a few dollars away each month into an interest-bearing savings account, you may be able to cover unforeseen expenses from there rather than having to go through a third-party.
Understand though that if you can’t build your savings quickly enough, you may get caught with a big expense you can’t afford.
Home Warranties Are a Great Way to Keep Your Financials in Check
You never know when adversity will strike. Home warranties help shield you against that unexpected hardship so you can move through life without worrying.
That’s a benefit worth investing in.
For more information on the benefits of a home warranty or other real estate topics, check out more content on our blog.
