Boise Real Estate- Home Warranties: Are they worth it?

boise-home-5_400You've started looking at Boise real estate and your agent mentions Home Warranties:  Are they really worth it? 

There has been a lot of debate about home warranties.  Are they worth the cost and do they actually cover the cost of repairs?  When you are out looking at Idaho properties should consider whether or not it has a home warranty?  Do you need one after purchasing a home?  Are they worth the cost and how do they work?  These frequently asked questions are important to know the answers to because it could save you thousands.  As always, it is important to research the company you do business with, read the small print, compare the coverage, and see if they have a history of doing what they say they will do.                    

What is a home warranty and what do they cover?  Home warranty policies can save you money and can protect you against expensive repairs and give you peace of mind. Most cover heating, plumbing, electric,duct work, hot water heaters, etc.  They usually do not cover the air conditioning system.  You usually can get additional coverage for an added cost. 

Should I get a home warranty?  The pros and cons should be carefully considered, the warranty costs verses benefits, and each individual policy is different.  A lot of buyers will not consider home warranties unless it is an older home but any home can have repair issues even when they are well maintained.  

How much do they cost?  They cost between $250 and $500 or more depending on the level of coverage.  Then for each claim, the homeowner must pay for a service trip for each item.  The warranty companies usually charge between $50 and $100 per service trip. 

Will the seller pay for the home warranty?  This is a negotiated expense for Idaho real estate.  Some sellers agree to pay for it as a concession to the sale.  However, for most short sales and a lot of bank owned properties, the buyer would have to pay for their own home warranty. 

Should a seller get a home warranty BEFORE listing the house?  Many home warranty companies now offer a program that is becoming increasingly popular for sellers that covers the home during the listing period so if something breaks right before closing, then it will be covered by the warranty and then after closing, the warranty transfers to the buyer for a full year.  Sounds like a potential win-win for the buyer and the seller! 

A home warranty can provide valuable coverage against the cost of expensive home repairs.  It is important to know what you are getting before you purchase your policy and know the procedures required to make a claim.  Buying a home in Idaho can be expensive enough and having some protection against the high cost of repairs may help you sleep better at night.

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