Home Buying in Oakland>Question Details

Guy72, Home Buyer in Oakland, CA

I'm in escrow now, thinking about a home warranty, is it worth it?

Asked by Guy72, Oakland, CA Fri Jan 13, 2012

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I also usually buy my clients the home warranty as a closing gift. I have had a number of clients call me and say that within the first year something happened in their house and they had to use the warranty. They saved a lot of money by having the warranty in place. I am always happy when my clients are happy.
0 votes Thank Flag Link Mon Sep 10, 2012
I almost always provide a home warranty as a closing gift for my buyers, unless the house is going to be gutted. And most call me within a few months to say they've used it. One of the joys of home ownership is that you will be the one who fixes any item that breaks, from the day you take title...so, YES, I think a home warranty, especially for a first time home owner, is well worth the investment.
0 votes Thank Flag Link Fri Jan 20, 2012
Overall, I say yes. In the first couple of months we moved into our new house, the central air malfunctioned and the warranty more than paid for itself.

But be cautious. We also had a problem - we thought - with leaking hot water pipes under the house. The warranty company sent their contracted plumbers who said that was indeed the issue, and we'd have to repipe the ENTIRE house either by tearing up our hardwood floors and going under (sob), or by running piping through the walls and around part of the exterior and covering (double-sob). Got a second opinion from a recommended, trusted plumber, and discovered was actually an overactive hot water pump that could be fixed with a $20 timer.

Given our two experiences, would say that the warranty was worth it...just don't be afraid to get a second opinion from a non-warranty company if something seems fishy to you.
0 votes Thank Flag Link Fri Jan 20, 2012
I am an agent and purchased a new house in July. The house was older but in great condition. I have used my home warranty twice now, and once was on a new appliance. Someone else mentioned the exclusions, so make sure you understand those, and know that in the event of replacement, they don't always replace with identical items. But would I have purchased my home without it? Nope.

Mention this question to your agent, maybe they will pitch in with the cost. Or if you are still in your negotiation period, ask the seller to cover this cost. They may not since it wasn't originally requested when you wrote the offer, but if you don't ask, you won't know!

Good luck.
0 votes Thank Flag Link Wed Jan 18, 2012
Absolutely! Just check the companies and compare. I would recommend Buyers Home Protection Company, Old Republic Home Warranty, and Fidelity Home Warranty as the three best here. Even if you have a great home inspection and are aware of all the house problems going in, there are all sorts of things that can happen that would be expensive to repair in your first year. I can give you several examples of new homeowners having plumbing pipes burst, a furnace that mysteriously stopped working etc., and the call to the home warranty company and minimal service fee (around $50) took care of a problem. Most of these repairs would have cost hundreds of dollars to fix if the Contractor had to be paid their full fee. In my experience, the good companies go the extra mile, provide great service and do not nickel and dime the customer.
0 votes Thank Flag Link Sun Jan 15, 2012
Unless you're in a brand new house with all new appliances, it's definitely a good idea to have home warranty the first year. You just never know what hidden problems may come up with older appliances.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Fri Jan 13, 2012
Yes .
0 votes Thank Flag Link Fri Jan 13, 2012
It depends. If you have a warranty you need to call the company first and they select their resources. Be prepared for many exclusions in coverage and the service call cost which you pay anyway. If you're going to replace appliances and a general inspection revealed exisitng problems it may be a waste of money.
On the other hand I've had clients get their moneys worth when an old water heater or furnace goes out.
And some buyers just feel more comfortable having a warranty for the first year and they will call in several smaller items and feel it is worth it. I've noticed that the sellers coverage I use does not include fridges, so maybe that's a common item to stop working when a house sells!
Web Reference: http://jackiecare.com/
0 votes Thank Flag Link Fri Jan 13, 2012
I think so! You never know what may go wrong!
0 votes Thank Flag Link Fri Jan 13, 2012
Yes! I recommend it. Things break!
0 votes Thank Flag Link Fri Jan 13, 2012
Hello:
A home warranty might be a good option to consider. In some instances and for covered reasons, it could provide you with some cost savings with any future issues. I think the overall condition and age of the home should be considered in making a determination. Also, you might want to see if any of the systems, appliances, etc...may have their own warranties. I would recommend you take a look at the various policies and their coverages, including service call fees and in particular, what is and isn't covered under the policies.
Best of luck and congratulations on your new home.
Joe III
0 votes Thank Flag Link Fri Jan 13, 2012
How old is the House?
Does it come with any warranties; HVAC, Roof, Appliances, etc?
How old are those things?
Would it hurt you to self-insure?

I recommend it in the right circumstances.
Understand that we don't make anything off of it.

Good luck and may God bless
0 votes Thank Flag Link Fri Jan 13, 2012
I think it is. I've seen these companies replace furnaces and air conditioners. You might make a calculated decision based on the condition of the property. I take it ... since you are asking now ... that you did not negotiate it in the transaction to have the seller pay!


Lisa Wetzel
RE/MAX Realty Affiliates
1320 Hwy 395
Gardnerville, NV 89410
775-781-5472
0 votes Thank Flag Link Fri Jan 13, 2012
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