Is a home warranty worth it?
Are you thinking of buying a home? Or are you looking to sell? Either way, you may be wondering if a home warranty is worth it. There are few interesting articles on this topic to share.
Top Considerations
First, as you may know our preferred lenders are from Movement Mortgage. So, we start diving into their take on the value of having a warranty. According to Mitch Mitchell from Movement Mortgage, one of the first mistakes people make when buying a home is not anticipating breakdowns. Hence, if you have just bought a home and money is low a warranty may be a wise choice. In fact, if you are buying an older home, it may be the smartest choice. “Home warranties are designed to protect your home’s critical systems and appliances from breakdowns caused by normal wear and tear.”
Furthermore, sellers may offer a warranty as a benefit to purchase their home. On the other hand, is it always the best option for the buyer?
Bottom Line from Investopedia on Home Warranties
We went to investopedia.com to review the pros and cons of buying a home warranty. And here is the takeaway:
- A home warranty reassures a homebuyer and provides the seller with a measure of protection against complaints about home defects that arise after the sale closes.
- The improper maintenance clause common to warranties can mean the new homeowner is not really protected if something goes wrong and the previous owner had not maintained the system properly.
- The homeowner may have little or no say in the model or brand of a replacement component or may not like the job the company-designated contractor does.
- Rather than get a home warranty, it may make more sense to put premium payments into an emergency fund to use for any repairs that do come up.
But do not stop there. Read the article to find out the full list of pros and cons before you decide. On a final note, we leave you with this from Investopedia:
IMPORTANT! Home warranties often come up when purchasing a home. The seller may offer to purchase one on your behalf to provide peace of mind that any component of the home can be fixed affordably; if not, you will receive numerous mail solicitations to purchase a home warranty once the sale closes.
Are You Ready to Sell your Home?
Right now, is the best time to sell. According Fortune Zillow has dramatically changed its forecast for the year. *
“Look no further than Zillow. Back in December, the home listing site predicted that U.S. home values would climb 11% this year. Economists at Zillow now say that forecast is too conservative. Their latest forecast finds home prices are set to spike 16.4% between December 2021 and December 2022.”
Contact the Dias Team to get started today!
*sited in golocalprov.com/business