Home Warranty

[Lesley Resnick]

Has anyone purchased a Home Warranty?  I am looking for feedback on this idea.    

The cost is between $400-600.  A quad would cost $1,100  ($275 a unit).  Typically, the cost of maintenance is estimated in the 1% of purchase price  range, this seems to fit the numbers.  It may not be cheaper, but it seem easier.  The cost should not be any more expensive either.  There is something to be said for smoothing out highs and lows of expenses associated with maintenance. 

It is not something for every property, but there are a few areas I think it would be a good fit?

1. Out of town owners - One number to call for all service

2.  War Zone properties - they have an option to change the AC filters monthly

3.  Multi units - at $275 per unit

4.  Highly leveraged properties with our significant cash reserves. 

[Mark Limke]

I am not a fan. I sometimes have sold them, but I always give my frank opinion about them. They are a 'hold your nose and buy' purchase, because buyers value them, and sometimes they make a house sell more quickly.

Don't forget to read about all the exclusions in the pages of fine print. And don't forget there is a deductible. And make sure it applies to rental properties, not just residential.

Do they charge you to change filters? Curious how much that option costs.

You will hear people say how they saved money this way. Consider that people widely report things that make them look smart, and tend to not mention things where their purchase turned out to be money wasted or misspent.