Are Home Warranties Worth it? Let's Find Out:
Buying a home can give you mixed feelings. In fact, homebuying is a great journey of contemplating a handful of factors to make a secure and right investment. After all, you’d never want to face a single chance to feel regret after investing your big hard-earned money into it. In this state of great stress, does home warranty brings peace to your mind? Should you consider Home warranty while buying a home or should simply ignore it? According to US real estate stats, 80% of property sales come with a home warranty. And this gives a prime reason to discuss whether home warranty really worth it or not? This article will explore all those factors that come and goes into your mind to let you help with the best property decision.
Defining Home Warranty
So have you wondered what would you do if your AC goes awry all of sudden? What will you do? A home warranty can be an answer. A home warranty acts as a test to qualify the quality of a home. It is annual service contact done between a homeowner and a home warranty company that aims to guarantee to pay the repair and replacement cost against covered items that commonly include electric appliances, air conditioning, plumbing, and heating, and more. In modern times, home warranties have become a big companion to every homeowner willing to save his pocket from unwanted future damage and repair costs. However, do not confuse it with the home insurance plans. Where the home warranties cover a small territory of services, insurance services are meant to target big deals and are even mandatory in big mortgage deals.
What is included in Home Warranty?
There is no consent answer for this. As it’s completely the subject of the company you are going to buy your home warranty. Depending upon the company, the availability of services can be varied. However, as a general rule of thumb, there is a line of common areas that usually comes into the Home warranty covers such as:
How Does a Home Warranty Work?
So the next aspect to talk about is how Home warranty actually works. For better understanding, let's start with an example. Okay, let's say the AC of your home start malfunction and you need to fix it. If you own a home warranty, this is how it will go.
How do I know I need to buy a home warranty?
Needless to say, Homebuying is one of the prime purchases you’ll make, thus, a lot of consideration must be taken to determine if buying a warranty would add value to the home deal or it simply remains unchanged. To help you out making the right decision, here we have round up the few areas that you can think as the prerequisite before purchasing a warranty plan:
How Much Does a Home Warranty Cost?
Now its time to talk about the main aspect i.e. money! So there is no set bar for this. In the current market, the plans can ve available in three main classes that are mainly divided on the basis of no services offered. Simply put, if you want to keep your plan limited to one or two appliances only you can go for a small plan warranty ranging from $200 to $800. However, if you looking for a big comprehensive plan, the cost may jump to $1500 to $2000.
Final Wrap Up
A home without a home warranty can soon turn into a big headache. Make your property transaction worthy by simply investing in warranty plans to put your mind into the state of peace forever. Use these tips and tricks discussed here to choose the best warranty plan that fits your budget. Do not become tempted to big marketing advertising triggering you to rush into the queue. Do proper homework. Make points about why you need your home warranty plan. And then step out to find the best and reliable dealer to make the purchase.