Home Buying in Fremont>Question Details

Sachin, Home Buyer in Fremont, CA

EquityLock Home Price protection

Asked by Sachin, Fremont, CA Thu Jul 11, 2013

Was wondering what do people think about home price protection. It looks like a good idea but not sure if the company is solid and will be around when things turn nasty. Any other big wall street firm that has similar offering ?

http://equitylocksolutions.com/home-price-protection

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3
I don't see anything comparable between a home warranty and equity insurance, neither in concept nor in name. Only similarity is that both are overpriced for what they cover due to limited transparency and competition.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat Jul 20, 2013
Seems comparable to a home warranty except with the equity insurance. Better to consult a Realtor who will advise you of pricing trends and that is free.
0 votes Thank Flag Link Sat Jul 20, 2013
It's an interesting idea, one that was tossed about by a few classmates of mine back during the depths of the housing bust in 2008. It's an unproven model and their lack of contact information is certainly cause for concern.

But, let's say of the sake of argument they have a strong financial backer. I don't know how they can accept a value without an appraisal. Unless there's a catch, I would be insuring every 1 bedroom condo for $2M value. Otherwise, if they're only going by past comps or an online system like Zestimate, then it's very likely that the insurable value is so low, that there's no point in spending $10s of thousands in coverage expense.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Jul 12, 2013
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