Buying a home is a complicated process, one that can take weeks or even months of your valuable time. With all of the choices, decisions and negotiations that have to be made, it’s easy to feel overwhelmed and lose focus on the important aspects. Home warranties can sometimes be overlooked in all of the chaos and negotiating, but here are a few reasons why you may want to consider purchasing a home warranty for your new house.
Why Get a Home Warranty?
In some cases a home warranty may not be mandatory, but there are many instances in which a home warranty can be essential. A home warranty covers unexpected problems that may come up with your appliances or heating and air conditioning systems. Some sellers will offer to buy the home warranty for the first year just to help seal the deal and give you, the buyer, peace of mind. Other sellers won’t pay for it and you will have to make the decision yourself on whether or not you want to shell out the money. If you fit any one of the following circumstances, chances are good that you’ll want a home warranty:
* You’re a first time home buyer
* The home you’re buying is over five years old
* The appliances are starting to get old
* You don’t have backup funds for an expensive repair
* You don’t have the knowledge, experience or time to be able to handle repairs on your own
If you are a first time home buyer, the odds are likely that you won’t have a lot of extra cash on hand. A broken heating system can cost thousands of dollars to replace. Additionally, many first time home buyers don’t have the experience needed to make repairs on appliances. If your home or appliances are older, they’re more likely to have problems that will require expensive repairs.
Before Buying a Home Warranty
There are a few important things to consider before signing a contract for a home warranty. First, it’s essential that you fully understand what is covered under the home warranty and what is not covered. Some warranties charge a service fee of up to $100, while others will only cover a certain amount of a repair. It’s vital to get all of the facts about your home warranty before you sign a contract, just like you would want to know every detail about your home purchase before closing.
Making the decision to purchase a home warranty, at least for the first year, can give you great peace of mind that your investment will be protected should something unexpected happen. Doing your homework is the first step to choosing a reputable home warranty service. Look up a well-known and trusted company like American Home Shield at http://www.ahs.com/ in order to get a look at what a home warranty service leader typically provides. With the right tools and information at your fingertips, you’ll be able to rest easy knowing you have the knowledge you need to successfully navigate a home warranty contract.