Home warranties have been around for quite some time now but have risen in popularity in the past decade. With a lot of home warranties sold in the Tampa Bay are, Florida is no exception. They are often used in sales transactions as a sales tool so the seller can provide for the buyer piece of mind or a buyer can buy if purchasing the home for example on an “as is” basis (if the seller does not offer one). For example, if something goes wrong with a covered item — appliance, electrical, plumbing, etc. — the buyer will call upon the home warranty instead of blaming the seller or the listing agent. Depending on the coverage purchased, the general policies have some significant limitations and issues. For example, some home warranty companies could have customer service issues that should cause a buyer some concern. The property owner should find out what is covered and is not covered – like pre-existing conditions, or certain appliances. in the basic policy, the cost of a service call could be very high. If the consumer calls their own subcontractor and does not call the home warranty company to send out their representative, the claim could be denied all together. Lets look at who would be motivated to purchase a home warranty:
A seller offer a warranty to compete with new homes or as a good marketing tool to get the property sold. This gives a buyer piece of mind and takes some of the stress out of buying a new home . A buyer might purchase a home warranty if they are buying the property on an “as is” basis or it’s an older home. Maybe the buyer’s home inspection revealed something that could potentially be a problem in the near future. Most new home builders offer home warranties as part of the sale of their homes. Since the appliances and electrical items are new, there probably is no need to purchase an additional home warranty. Although older homes could have a higher chance of something going wrong, some warranty companies only pay the depreciated value of appliances and exclude items like outdated wiring and plumbing.
Since the cost of a home warranty can vary greatly, the property owner should consider what’s covered, cost of the policy and service calls (just to name a few items to consider). So the answer is, it depends.
If you are interested in buying a new home or an existing home, please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida 33511) and I can help you find a new home in the Tampa Bay Area. My email address is firstname.lastname@example.org or call me at 813.205.9280. If you are just starting your search, you can search the MLS for homes on my website at this link.