Do You Really Need a Home Warranty?

Orange County, CA Real Estate Podcast with Torey Severino

What is a home warranty and should you get one at close of escrow? I’ll cover everything you need to know today.

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What is a home warranty? Should you get one at the close of escrow?
First of all, keep in mind that a home warranty is not the same thing as home insurance. A home warranty is a one-year policy that covers many of the mechanical items on the property, such as pool equipment, the water heater, the furnace, A/C, or other appliances.
As a buyer, you should absolutely get a home warranty. After the close of escrow, you can move into the property knowing that if anything goes wrong, all you have to do is call the home warranty company. The company will then send out a technician to repair or replace the appliance.

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Should you get a home warranty?

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As a seller, the home warranty is a great way to offer buyers reassurance.
Who pays for the home warranty and what does it cost?
Depending on the market, either the buyer or the seller will pay for the home warranty. In a more competitive market with lower inventory that favors sellers, it is more likely that the buyer will have to pay for the home warranty. In a buyer’s market, where there is more inventory and buyers have the advantage, then the seller will foot the bill for the home warranty.
Home warranties tend to cost between $350 and $700, depending on the home and the number of items that the warranty covers.
Still, a home warranty is worth the investment. If you have any other questions about home warranties, give me a call or send me an email. I would be happy to help you!