When should I apply for a home warranty?
A: I highly recommend professional home warranties and often purchase the first-year coverage myself for my clients. This is especially important if it is an older home.
You can purchase added coverage beyond the standard warranty for things like washers and dryers, refrigerators, air conditioning and even pools and spas. Be sure to read the warranty coverage and the fine print so you know what is covered and what is not.
Be sure to always call the home warranty company first to see if the repair/replacement is a covered item. If you have the item repaired without contacting the home warranty company first, chances are you will not recover the expense. This is usually spelled out in the warranty. I call my clients and remind them periodically throughout the first year that they do have coverage and remind them to always call and see if the repair is covered.
If you have an issue with the repair person, call the warranty company immediately. Most are good at following up and making sure you are satisfied with the work. If not, they will have someone else come out for a second opinion. I have even had them go outside their network of vendors to find the right company because the ones they had for a particular repair did not do quality work.
I believe the cost of the warranty is well worth the money.
Jill Gumina, Hill & Co Real Estate, (415) 321-3106, jgumina@hill-co.com. A: Buying a home is a major investment and many buyers use most of their available cash to complete the purchase. Plumbing, electrical and heating issues, including breakdown of the hot water heater, furnace and appliances, can be quite costly at a time when significant assets have been invested in your home.
A home warranty can make your life less stressful at a relatively low cost.
It is important to realize that the package is not actually a warranty but rather a service contract that promises to repair or replace covered damaged appliances and systems. Home warranties are particularly valuable in properties with older appliances and our usual recommendation is a one-year warranty. Sellers can also purchase coverage which typically covers many issues that may arise during the marketing and escrow periods in addition to one year of coverage commencing at closing.
We usually recommend that buyers consider purchasing a home warranty with the exception of new construction when appliances, and often the property itself, are covered by warranties. As a general rule buyers and sellers cannot go wrong by purchasing a home warranty. We believe that it is better to be safe than sorry. Bernie Katzmann, Vanguard Properties, (415) 906-6000, katzmannsf@gmail.com; Mike Shaw, Vanguard Properties, (415)
308-4281, mshawsf@gmail.com. A: A home warranty covers the cost to repair or replace appliances and systems within a home and is a wise choice for anyone buying a property. The plan is far less expensive than purchasing extended warranties on your appliances and you can have the electrical, plumbing, heating and cooling systems covered as well.
For a nominal fee, the plan will have a reputable service provider come out to repair or replace what’s broken, and you never even receive a bill.
Most home buyers are cash poor for a while. Those in San Francisco are usually buying older homes, so not only is a home warranty very affordable, but it’s likely to be used. It’s even a good idea for a home seller to buy a plan for the buyer, since most issues that arise after a sale are because something wasn’t disclosed or something breaks shortly after the sale.
It’s more effective to purchase a plan for two or three years, but covering at least the first year is a no brainer.
My very first client used the plan I bought him to have his garbage disposal fixed shortly after his purchase. Comparing the cost to the benefits, you can’t go wrong with a home warranty plan.
Maitri Ratanasene, Paragon Real Estate Group, (415) 215-5505, maitri@paragon-re.com.