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Chris51

Do I Need A Home Warranty?

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I am buying a Trendmaker home in Richmond built in 2000 with 2 previous owners. I am having an inspection done, structural, termite, and pool, also considering getting mold inspection. Do I need a home warranty? Any recommendations or warnings as to what to look out for or what to avoid? We are moving from the midwest and in addition to never hearing about home warranties I am unfamiliar with the tole that Houston's extreme heat and humidity can take on a home. Looking for some great advice. Thanks to all.

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I am buying a Trendmaker home in Richmond built in 2000 with 2 previous owners. I am having an inspection done, structural, termite, and pool, also considering getting mold inspection. Do I need a home warranty? Any recommendations or warnings as to what to look out for or what to avoid? We are moving from the midwest and in addition to never hearing about home warranties I am unfamiliar with the tole that Houston's extreme heat and humidity can take on a home. Looking for some great advice. Thanks to all.

If there's something you know about the house or its fixtures that the company providing the warranty does not that would lead you to believe that there may be a problem in the near future, then that's a clear-cut case of asymmetric information, and you should seriously consider it. Otherwise, only get it if your cash budget is so tight or otherwise unpredictable that the replacement of a major appliance would result in you not being able to pay your bills.

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I would not buy one on my own, but it is fairly common here when buying a home to negotiate that the seller throw in a one-year home warranty. That has been the case on the 3 homes I've bought, anyway. As far as I know, they cover some combination of appliances, plumbing and HVAC, but coverage varies widely. Personally, I think the home warrranty business exists only to bottom feed off the residential real estate industry and no one would ever buy them otherwise. I've not known anyone who's policy paid for an appliance replacement or major repair. I had an allegedly good warranty from AHS that did not cover the washing machine at all. And, you don't get to pick your service contractors when you make a claim on the warranty.

I've always been interested to know how many people renew their warranties after the contract expires. AHS hounded me for a while after my last one lapsed, and renewal was about $800 a year. This, for the policy that did not cover washing machines.

Edited by crunchtastic

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Home warranty horror stories abound! I have always received them from the seller of a property, but have never, and would never, buy one out-of-pocket. I made a plumbing claim on my old house, and had to have their contracted plumber out multiple times to fix a relatively simple bathtub faucet leak. Same with AC work. This truly is a you-get-what-you-pay-for industry.

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Home warranty horror stories abound! I have always received them from the seller of a property, but have never, and would never, buy one out-of-pocket. I made a plumbing claim on my old house, and had to have their contracted plumber out multiple times to fix a relatively simple bathtub faucet leak. Same with AC work. This truly is a you-get-what-you-pay-for industry.

Home warranties are brought to you by the same people who bring you extended warranties at Best Buy and Conn's, and the extended automobile warranty. Consider them in the same light.

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In my experience, I have had a dishwasher replaced for the $50 call fee. An A/C compressor unit replaced, FREE of charge. I had my ext. warranty thrown in with the purchase of the house. In retrospect it seemed to be worth it. The only drawback I can see, is that you usually have to choose between the A/C being covered or the shingles on the roof.

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Most warranties have so many restrictions and exceptions that they rarely pay off. However, for those that get circumstances where they do pay out, its a blessing.

I think most people have a better chance of seeing Bigfoot than having a claim paid off by one of these warranties.

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Most warranties have so many restrictions and exceptions that they rarely pay off. However, for those that get circumstances where they do pay out, its a blessing.

I think most people have a better chance of seeing Bigfoot than having a claim paid off by one of these warranties.

I guess I saw bigfoot, then. I had my A/C go out a year after buying my condo, and ARS took care of it as part of the warranty that had been provided by the seller. No muss, no fuss.

I don't see these as anything more than an insurance policy, and in many/most cases they aren't worth it. Sometimes they are.

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In Texas the seller usually pays for the warranty. If you dont ask for one are you going to get $350 off. Probably not. Basically the warranty stop small issues from becoming lawsuits so the sellers have some benefit in their being a warranty as well. If fact once when we purchased a house and didnt ask for a warranty the seller said they would not sell the house unless a warranty was involved.

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I think they are worth it - if the company is a good one. My clients have all had good things to say about Old Republic - mixed on AHS and Best - bad enough on Allied that I no longer give out their brochure. Plus, Old Republic mails me a postcard everytime one of my clients utilize them, showing what the real cost of service was to Old Republic vs. the $60 service call the client paid. I personally have Allied and have not had a problem, but I don't know if I have been lucky (yes, I have used them 3 times in 4 years) or if they knew I was a realtor. The first year is usually paid by the seller (written into the contract). Subsequent years are up to you. Old Republic is $350 vs. some that are as low as $280. The second year runs about $50 more. Plus, always get the upgrade concerning the AC for $50 on that first year.

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We have Old Republic (through the purchase of the home - not on our own) and it replaced the ancient oven in this thread:

I didn't have much hope but they sent out a technician to evaluate the situation, he determined it was not fixable, we paid $60, and OR sent us a check for WAY more than I would have thought (we had three options - check, gift card, or replacement including delivery and installation).

I was pleasantly surprised..

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