First-time homebuyers can go through a long and arduous process of purchasing a home right up through the closing process if not properly prepared by their broker. And one of the things I often hear homebuyers telling me about is how they didn’t have enough cash on hand for their first home and how they were not made aware of home warranties and how they work.
Let’s start with what a home warranty is. A home warranty is a protection plan that helps cover any unexpected repairs. For first-time homebuyers, I believe this is a must-have!
Why do I believe this? Let me give you a scenario. Let’s say a few months after moving in, your HVAC or a major appliance goes out on you. Instead of shelling out several hundred dollars (or even a few thousand) from your savings, you simply pick up the phone and report the breakdown to your home warranty provider. They, in turn, contact a third-party contractor to make an appointment with you. Assuming you have the appropriate coverage, the contractor will cover the repair or replacement under your warranty, and you will likely have to pay a trade service fee; this, however, is nothing compared to what you would’ve paid otherwise.
You’ll notice in the example above I assumed you had the appropriate coverage. So what does a home warranty typically cover? Though each home warranty varies, the following list of items are generally covered:
- HVAC
- Electrical
- Plumbing
- Water heater
- Central vacuum
- Refrigerators
- Stoves/Ovens
- Dishwashers
- Washers/Dryers
- Built-in microwaves
- Trash compactor
- Garage Door Opener
So, what could you pay for this type of coverage? Well, depending how extensive the policy is, several hundred dollars or more is a safe bet.
By now, you’re probably wondering what situations would not be covered by a home warranty. Here are six common reasons to exclude coverage:
- Lack of maintenance
- Improper installation
- Local code violation
- Excessive wear and tear
- Pre-existing conditions
- Item not included in the warranty
Finally, how do you get a home warranty? By asking me, of course! I will be happy to take care of that peace of mind for you! Don’t go online searching for companies. Let my experience guide you in the Albuquerque metro!
Do you have a home warranty? Are you satisfied with your coverage and service? What advice would you like to add? Please leave your comments below!
And if you’re thinking about selling or buying a home in metro Albuquerque, be sure to contact me today!
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