It is pretty common to see in most individual buyer/seller contracts with the seller paying for 1 year.
Regarding RSC's in general, the question you need to ask yourself is simple - given the age and condition of the property that you are considering buying, what is the likelihood that a major mechanical component will break down? And if it does, will it cause a significant financial hardship on you if you do not have an RSC in place? Given that you are considering a 3 year old home, the chances of the A/C or the hot water heater blowing up are probably fairly small, especially if the previous homeowner has undertaken minimal maintenance. If you DO decide to purchase an RSC, know that if something like the A/C breaks down, it probably won't cover the entire cost of the repair. If you need an entirely new A/C, the total cost might be $6,000 or $7,000 - and the home warranty might cover $4,000 of the expense. Without going into minutiae, just know that there are "related costs" that are not covered in an RSC - hence the difference. But having a policy in place would save you several thousand bucks, so it's not to be sneezed at.
Best of luck.
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Salafia Sold Team
It's always a good idea and the contracts are set up so that typically the seller pays. The home warranty covers lots of different things and you will have options and different levels of coverage. Typically you will see a buyer's purchase offer asking for $400 to $450 and you can get a decent policy within that price range. If you want extra coverage like for the sprinkler system or if you have a pool etc it can go up from there. The warranty will cover your appliances like the dishwasher which is probably out of warranty if the home is 3 years old.
After the first year you can decide if it is something that you want to continue and pay for it monthly or yearly.
Good luck with your purchase.
REALTOR | Mortgage Broker | Consultant
Keller Williams Realty | 360 Lending Group
Is it necessary on a 3 year old home, I do not believe so, reason being, heat, roof, hot water tank are all covered by manufactures warranties. Stove, oven, dishwasher, garbage disposal won't typically have problems for the 1st 5 years. But the warranty programs are cheap enough and if you believe it is a selling tool then by all means provide one.
Representing Greater Boston's finest builders and communities - Brookline, Dover, Needham, Newton, Wellesley and Weston
Anyone can pay for a one year home service contract, known as a "home warranty". I have never had one, but many people do get them, typically paid for by the seller for a buyer, at closing of a resale home. After 3 years, a home in Texas only has a structural warranty (good for 10 years) plus what manufacturer warranties might be in place.
They can cost upto $400 for a basic warranty. I've had many clients love them and other hate them as they would not cover what was promised. You need to read the fine print on this policy...an insurance policy basically. Most do not cover pre-existing issue and won't fix and item unless the system is upto code. Your Realtor should be able to send you links of 6-8 popular warranty companies so you can compare policies.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
If you can get a seller to pay for it, then by all means get one. (as far as who pays -- everything is negotiable).