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
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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