Should You Purchase a Home Warranty in Park City?

The actual question is…should you ask the seller to purchase a home warranty for you in your Real Estate Purchase Contract (REPC) in Park City? The answer is YES! In 11 years of selling real estate, I have had a seller deny the request maybe 4 times. So why not ask for a home warranty from the seller? The request on the REPC is very likely to be accepted.

The cost of a home warranty for a condo is about $500.00 or less. For a home, it depends on the square footage, but is typically less than $750.00. This is such a tiny amount of money for the seller to pay compared to the price of the transaction. It gives both the buyers and sellers peace of mind that for the first year of ownership, major systems, such as HVAC, plumbing, and electrical would be covered. Appliances and roof leaks are also covered and for an extra fee, even hot tubs and irrigation pumps may be included.

What should not be relied on is allowing the seller to say they are not going to fix a safety issue because of purchasing a home warranty. It doesn’t work that way. The system would have to break within that year for the home warranty to work. Also, some home warranty companies ask for the property inspection report. If the broken system or appliance was found faulty and reported on the inspection report, the home warranty may not cover it.

Are home warranties perfect? NO. Some companies force you to use their subcontractors, who may not be that skilled. Other complaints about home warranty companies are that they don’t replace with the same quality appliance or system as what failed. Or they don’t let you upgrade and pay the difference. But, when you’re in a pinch, and your furnace has failed with below zero degree temps, getting someone out to the home for about a $75 service fee is well worth it. Not pleased with the service or replacement appliance? Talk to your Realtor®. Home warranty companies have sales reps who want recommendations from Realtor®s. If we hear that a home warranty company is not providing great service to our client, we will make a call to the rep. The one on one communication has been shown to get action and is much better than a call to a 1-800 phone number.

I have some clients who elect to purchase a policy for the second year and more at their own expense. Some clients have better luck than others. What I also see regularly is that clients forget that they have a home warranty and call a repairman and pay out the nose, when a simple inexpensive service fee could’ve been paid instead. Don’t be that client! Keep your home warranty company policy handy in a file or e-file with your other important paperwork.

Have questions about which home warranty companies do a better job than others? Give me a call. I’d be happy to help.