To Home Warranty or Not?
August 4th, 2014
It’s customary in this current market for sellers to provide warranties and/or for buyers to request them in an offer. Is getting a warranty just an ingrained habit or is it really worth it?
The MPT thinks that in most cases warranties are worth the expense. They certainly imbue the transaction with a sense of security that is essential for getting to closing with confidence. And, chances are that something that the warranty covers is going to need fixing in the year after closing. Chances are also that something that is not covered by the warranty is going to need fixing as well.
The best thing a buyer can do is to read the fine print before closing and to get any coverage questions answered by the chosen warranty company. An important thing to keep in mind is that warranties cannot be used to fix items that were not in working order at the time the warranty is activated. Those fixes should be negotiated with a seller before closing.