Home Warranty?
I am currently in the process of purchasing my first home. I was one of 6 offers on a duplex that I plan on living in and renting out. I am 21 and feel privleged to be able to afford to get into this game. My question is that my realtor just asked me if I would be purchasing the home mortage that her company offers. My first reaction was "no, those things are scams" but now that I am thinking about it, i was wondering what you pros thought. Let me give you a little break down:
House was built in the 1920s
Furnace and hot water heater are junk and there was a $4000 allowance negotiated to replace them.
All appliances are fairly old and will require replacement eventually.
Everything "seems" to be in fairl decent condition, and I can't forsee anything too terrible happen. I had a home inspection that turned up very few problems, save the hot water heater and furnace.
Thanks,
Rob
Since you do have an allowance you have your bases covered for the potential problems you expect. The difficulties come with the ones you don't. Home warranties can be a good thing and for the $300 a year you get the piece of mind of knowing you are covered and you have made you money after the first claim. I have personally used one on my residence and it saved me quite a bit. Make sure that if you do get one that you contact the warranty company first with any problems before using a contractor.
Rob,
I like the idea of being covered by a home warranty, especialy on rental property. My boss had her first investment "saved" by a warranty. She said everything that could break...DID, all within a few months. The home warranty covered everything for them.( minus the call out fees etc. One thing to remember: Read the fine print. If the appliances are old, there may be some issues with coverage. Also, ask around about the company's reputation.
Chris