Well I would definitely recommend to do your due dillegence. I have always recommended AHS - American Home Shield. They have been rather good to a few of my clients who have purchased the warranty. They even send me a postcard of the repair they just did on behalf of my client. I get to call them and ask what happened (My most recent one said: that my client saved $1,316 for a heating item replacement).

My clients have been happy and I always recommend that a seller pick up the cost for a buyer as an added incentive to make the buyer feel comfortable that the home is covered in case something should go wrong for a year after they purchase the home.

Like anything you need to do your homework. There are some companies that are better than others.
Frankly, I have found that the home warranty especially the first year of resales has been invaluable for my clients. $45-$60 service charge for the most part is what a new homeowner will pay for repairs or replacements.
Murphy's law always starts the day of close of escrow. I have had many clients make it a point to thank me for that first year home warranty that was included. It save them hundreds of dollars.
Buying a re sale home things happen. A small minimal fee up front vs coming up with hundreds for cash poor new homeowners makes a lot of sense.
If the homeowner is able to pay to continue the homewarranty I usually encourage them. I have much more positive feed back vs negative. My clients have had new dishwashers, stoves, furnace, A/C, electrical issues, various repairs taken care of.
I have carried the homewarranty on my home and the repairs I needed done would have cost much more than the cost of the home warranty.
It is personal choice, home work and look at the fine print....

I recommend home warranties..and try to provide potential buyers with several options, and a range of prices...and let them make sure what is covered and for how much...having used some myself, it becomes yet another form of an insurance policy that in our cases is well worth it...I do not recommend it however on new properties, or properties where the buyers largest liabilities such as HVAC, stoves, etc are still under manufacturers warranty.

One has to look carefully at the manufacturer''s warranties especially on HVAC systems...one good example is an energy efficient system that has a 14 SEER system with a 10 yr warranty versus the standard 13 SEER system with only a 5 yr warranty...when it comes time to sell the property, the potential buyer will have a great advantage / reduced risk with the 10 yr warranty, and may require less of a home warranty.

Buying a home warranty is like buying an extended warranty on a car, it may pay something if something goes wrong. But its never hurts to ask the seller to throw it in just in case.

To add to that, warranty companies are betting nothing will go wrong, you are betting something will go wrong, Its like saying your going to win at the slots, you could...it does happen. But in the end the house always wins.

Yeah, Marc I'm going to agree/disagree. My home protection company sends me postcards of when a clients pursues a claim . . . I've had clients get their money's worth.

The approximate cost here in south/central NJ is $400, covers many features for the seller for the term of the listing whether the house sells or not. If it does sell, it is then extended (1) for a year from closing and (2) adds add'l coverage free of charge for the buyer. Buyers can also add more options. PAYMENT of the plan is made at closing, so if a seller lists, is successful with a claim and the house never sells, they do not how the $400 for the plan.

I do agree with posters below that it is an attractive feature for buyers when considering older homes or when they can readily notice that certain items are beyond their useful life.

Good questions Happ, u certanly do your homework!

Home Warranty policy is especially helpful when the home is older and the appliances, etc are older. There are deductibles, but when things fail, ti's better to pay for the deductible than pay for new appliances plus labor.

It gives buyers a comfort level when purchasing older homes and easier sale for sellers. I just received a postcard from the HOW I purchased for my seller to pass onto the buyers - they had over $2,300 claims and only paid a couple hundered dollars during the past year - The policy helped selling the older home that was my listing. .

Sylvia

It also might help to look at this insurance just like any other type of insurance. It works because the insurance companies sell enough policies to make a profit even with the number of claims. The truth is, that a home's systems last a pretty long time and don't regularly fail. Otherwise, many people couldn't afford to maintain their homes. However, a home warranty can be a good part of a marketing strategy and many even insure the home while it is listed.

A Home Protection Plan (Home Warranty) is a plan offered to prospective buyers and sellers. It is a one year warranty that covers the electrical and plumbing systems, furnace, water heater and appliances for a term of 1 year after close of escrow.

There is a basic policy and an upgraded version and there are exclusions and limitations to the policy. The policy costs between $225 -$300 for the basic or first class upgrade to the policy. Air condition, pool, spa, refrigerator, washer and dryer are at an extra cost.

Your local Realtor has several different companies to choose from and can best guide you with this.