Home Warranty - Suggestions

[Nick1994]

Ok, I went with him for the inspection this morning. The seller is paying for 1 year of warranty, and he can decide whether he wants to renew it or not at that point. The realtor said this warranty company is good with paying for work on R22 A/C units, as she's seen others that don't, so that's good I guess.

 

[ABN_CBT_ENGR]

Originally Posted by Nick1994
Ok, I went with him for the inspection this morning. The seller is paying for 1 year of warranty, and he can decide whether he wants to renew it or not at that point. The realtor said this warranty company is good with paying for work on R22 A/C units, as she's seen others that don't, so that's good I guess.


No disrespect to you or anyone but that's the most worthless and potentially dangerous "endorsement" possible and one of the main reasons people get away with these scams in the first place.

A "person" ( who arguably has a vested interest in the outcome via commission but no liability at all) says a company is "good" ( meaningless rating) on the sole basis of an unqualified opinion against "others' with no legitimate basis at all.

Then that somehow becomes the standard by which acceptance is "good".

PT Barnum was right.

Given the consistent advice given, its hard to feel anything for those who eventually get taken when they ignore everything because "she said its "good" after asking in the first place. They deserve what they get yet they will often yell the loudest.

 

[Silverado12]

I also think warranty companies aren't worth it, but it would be good for the seller to include a year or two warranty so the buyer has a chance to save some money. When I bought my first house I was broke as a joke and barely had anything left over come next payday. It changed in a couple years but young homeowners usually have a hard time financially when they're first starting out. Just thinking about this but I was 27 when I bought my first house. Been a long time ago.

 

[ABN_CBT_ENGR]

Want a "good" warranty that's ironclad?

List items to be covered, the length of coverage and the standard of performance and repair.

Then get the seller to post a cash surety bond for the amount of liability and a contract requiring it IAW the items to be covered.

That will hold up in every court on Earth and is 100% enforceable.

Wont need a warranty company or any additional fees- just the usual fee to draw up the contract ( usually about $200 for a simple one such as this)

 

[ZeeOSix]

Originally Posted by Nick1994
Looking for advice for a coworker. He's buying a house and wants a home warranty.


Is this a new house? If so, most builders have some kind of build quality warranty on the place. As far as any appliances, etc, the builder probably isn't going to cover any of that since the manufacturer's warranty would apply.

If it's a used house and the seller is paying for a warranty as part of the selling price, then guess that's better than nothing.

 

[Nick1994]

Originally Posted by ZeeOSix
Originally Posted by Nick1994
Looking for advice for a coworker. He's buying a house and wants a home warranty.


Is this a new house? If so, most builders have some kind of build quality warranty on the place. As far as any appliances, etc, the builder probably isn't going to cover any of that since the manufacturer's warranty would apply.

If it's a used house and the seller is paying for a warranty as part of the selling price, then guess that's better than nothing.

House was built in 2006

 

[JustinH]

Every new house I purchased had a one year warranty. Every used house we purchased, my realtor negotiated a 1 year warranty paid for by the seller.

This is very common place.

I used the warranty ONE time in all the houses I had. The garage door opener gear broke, and they came out and said it would be cheaper to not use the home warranty than to use it.

 

[alarmguy]

Your friend did good, seller paid for the warranty, It will be a nice peace of mind should something break down at a time he/she just spent a significant amount of money purchasing something, care free and a no brainer.

Keep in mind with warrantees, there are price tiers of what is covered. Anyway, seller pays, and it has worked out great for many couples who had an issue after they purchased.
Once it expires in a year, you will be settled in and I dont see a purpose to continue it but at least you got that year "free"

 

[Andrew1972]

A $500 one year policy is a likely mostly worthless but gold to the insecure or uneasy buyer. People who especially cannot afford homes comfortably (taking on 30 year instead of 15 year mortgages) it is peace of mind.

 

[alarmguy]

ummm ... I wouldn't put it that way "to the insecure or uneasy buyer" its a "perk", a "bonus", from the seller, so why not?

Quite honestly, if you dont get that warranty from the seller now a days, you had a bad real estate agent or if you bought on your own, you didnt do a very good job because its just a insignificant cost to the seller.

As far as worthless, that goes for any insurance, insurance is a product that companies make money on, its why it is called an insurance company and they make huge profits on whatever they insure.
So anyway, to a buyer, who just buys a house, its kind of a cool feeling if something is wrong when they move in chances are it is covered, IF they made sure to get what is called the "premium level protection"
Otherwise just the basics are covered and that is still a good feeling because it covers the essentials, heat/air ect.

I never had one but I moved a lot of real estate in my lifetime and I see the basic value in them, my son did have one (recently in the last five years) provided by the seller and needed some repairs the first year, like a new water heater that was fully covered except for the 50 or $100 deductible. He also had other small things fixed over that year.

Not a big deal but if you dont get a paid home warranty from the seller, then, in my mind, you didnt do a good job (or your attorney or real estate agent) in putting the deal together. The cost is nothing to the buyer and in essence the seller is warrantying that the homes basic systems and more) are in good shape. To me, its just good business sense.

 

[Dave Sherman]

Had a home warranty that came with the current house. Pretty worthless as far as I was concerned. Had to call them to get a copy of the terms mailed to me, which did say the house's electrical system was covered when my electric box was failing and badly needed replacement. Seems that a corroded bus bar and old age somehow led to a "Nope, not covered", even though breakers were burning up. Yep, breaker box is covered against failures unless it fails. Had to cover the $1500 cost to replace it myself.

 

[alarmguy]

It was your attorney or real estate agents fault, once again, that you had to get a copy of the warranty of the terms to understand what you (or the seller paid for) and was covered.