opinions on home warranties

[Omua Ahonkhai]

I am closing soon on a triplex in the city. This will be my first MFH and I am considering a home warranty. What are your thoughts on using them? Are they useful?  Or are they a waste of money?  

Thanks!

[Matt Nico]

Originally posted by @Omua Ahonkhai:

I am closing soon on a triplex in the city. This will be my first MFH and I am considering a home warranty. What are your thoughts on using them? Are they useful?  Or are they a waste of money?  

Thanks!

@Omua Ahonkhai - Hi There!!! I have 4 rental properties and for the first 3 I got a home warranty for them. The rentals were all single family homes with pools and older AC units, which I didn't know how to run or fix yet. For the first 2 deals, I negotiated it into the price for the seller to purchase me one. They are usually like $600-$800 for a good one for a year's coverage. When you are negotiating, once you think you have gotten the seller to go as low as he can go, say "Okay, I'll accept that price if you throw in a home warranty". Or wait for the inspection to come back, and use that as leverage to get the price down and get a warranty. And while I had the HW's, I did use them probably 2 times each per year.

These days I do not get a home warranty because the homes I buy are so beat up I am planning on ripping them apart anyway. And I know how to fix almost anything at this point (that's what 4 years of self managing does).

Final thoughts: If you are handy and you think you can fix a lot of small problems a warranty covers, then I'd say dont bother. If you are just starting out or are not that familiar with repairs and maintenance, definitely get one. 

Happy Housing,

Matt