Q&As
- What is the difference between a real estate agent and a real estate broker?
- What steps do I go through to buy a house?
- How long does it take to buy a house?
- I want to buy a house. I know the property and the seller has an agent. Do I need my own agent or can I negotiate a lower fee if I act as my own agent?
- How much does it cost to use a Buyer’s Agent / Realtor / Broker?
- Working with FHA/203B, RD, VA, Section 184, 203K, Conventional, HELOC, and other types of financing?
- Real vs Personal Property
- Mortgages for Manufactured Homes
- What is a CMA, Appraisal, and AVM?
- Can the Buyer purchase personal property from the Seller?
- Can a mortgage be used to purchase a mobile home?
- What are the basics for handling multiple offer negotiations?
- Are husband and wife required to apply jointly for a mortgage?
- How do I prepare for a cash purchase?
- Do I need flood insurance?
- Where can I research flood maps / areas?
- To whom should I write the earnest money check?
- Should I buy a residential service agreement (i.e. home warranty)?
- Assuming you’ll be obtaining mortgage financing (i.e. not paying cash), here’s a list of steps to buy a house:
- Do I also need an attorney?
- How does the MLS help buyers?
- What is the MLS?
- What’s the difference between a Pre-Qualification Letter and a Pre-Approval Letter?
- When do I apply with a mortgage lender?
- What is Owner’s Title Insurance (OTI)?
- What is Lender’s Title Insurance (LTI)?
- What is title insurance?
- What does a title company do for Buyers?
- How can Harrah Realty help me as a Buyer?
- How much does it cost to buy a home?
- Do you work with out of town clients?
- Can you help me purchase or build a new home?
- Do you work with First-Time Home Buyers?
- What is a lease purchase or an option purchase?
Should I buy a residential service agreement (i.e. home warranty)?
Technically termed a “Residential Service Agreement” (RSA), since the word “warranty” has specific legal meaning, a home warranty is a great opportunity for affordable peace of mind.
Home warranties are especially beneficial if you end up using them, like any warranty, but even if you don’t make a claim, you can think of it as an insurance policy against things going wrong.
Making A Claim
To make a claim, you call the service telephone number or use the company’s website. There is typically a $75+ service call fee per problem area.
For example, if you have 2 plumbing issues and 1 electrical issue, you’ll be charged 2 service fees.
If the problem is found to be under warranty (i.e. a covered item), the contractor will repair or replace it at no additional charge to you.
The contractors are chosen by the RSA company and are licensed, insured, etc. They are professionals and doing home warranty claim repairs is usually just one part of their business.
Let the contractor know up front if you’ll want them to do work in addition to what’s covered by the policy so they can schedule you for additional time and bring the additional materials and tools.
Renewing Your RSA
Because it often costs hundreds of dollars to successfully complete a long-term home repair, just one service call usually makes the home warranty pay off. Whether you do or not, you’re protecting yourself from having to dip into your savings if something big (that is covered) does come up.
Whether or not you make a claim, you can choose to renew your Residential Service Agreement each year. The price typically goes up after the first year, even if you don’t make a claim.
If you receive a lot of financial benefit from your year of claims (e.g. $10,000), you probably won’t be given the opportunity to renew with the same company.
However, even just having it for the first year, it can provide a safety net for things that may come up while you’re still getting to learn your new home.