Home warranties serve as protection to potential home buyers against unforeseen costly home repairs related to homeownership.

Generally, home warranties last for a year and offers financial assistance for home defects like broken furnaces, electrical issues, plumbing problems, or even failure of air conditioning units or refrigerators. Home warranties are purchased from Home Warranty companies whose entire business is providing home warranties for home buyers and occasional sellers like that of homes listed in the Baltimore MD MLS.

Basically, A standard one year home warranty costs between $270-$350 dollars. Heating systems, pipe links, water heaters, toilets, dishwashers, ovens, built in microwaves, and ovens are usually covered by a standard home warranty. There are also “upgraded” home warranty plans, or al-a-cart items that can be added for things like refrigerators, swimming pools, and septic systems.

If a covered item breaks down during the warranty period, home owners simply call the home warranty company, pay a service call (usually around $60), and the home warranty company will arrange repairing or replacing the problem.

In some instances buyers have no way to know if part of a house really works until after closing. Its impossible for a home inspector to tell if the furnace really is giving out heat especially if the temperature outside is 110 degress. The advantage of home warranties is that they offer home buyers protection to a home they just bought who particularly don’t know if the house need more repairs.

Is the Cost of Home Warranties Worth It?

Home owners are always thankful for the home warranty if they got home repairs during the first year of home ownership. If nothing happens, they usually forget they ever purchased it.

Knowing whether or not you need to buy a home warranty is a matter of personal choice and preference. Home warranties are highly recommended for people who live paycheck to paycheck because they might be surprised with the costly repairs.

Homeowners are better off without home warranties if they have a healthy savings account or a rainy day fund. Think about how home warranty companies make their money, it’s not by servicing Homes for Sale in Baltimore MD that need repairs, and it’s by having a higher percentage of warranties issued that require no service. What happens is that home warranties make money by playing the odds that the warranty won’t actually have to be used.

In addition, if a repair is needed, there is a good chance that the cost of the repair will be less than the cost of home warranty plus the service call fee.

A home warranty can be a great protection for Baltimore MD Homes for Sale, but in most cases, it will never actually be used.