Ask the REALTOR® is a regular video series in which I answer your most commonly-asked real estate questions, with a new Q&A posting every week. If YOU have a real estate question for me, drop me a note here.
This week’s question: Is a home warranty worth it? Here’s the answer in this brief video, and don’t miss the transcript below.
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Hi, this is Cari McGee with Keller Williams Realty. Welcome to this week’s episode of “Ask the Realtor.” Every week, I answer questions from buyers and sellers — and pretty much everyone in between — regarding real estate.
This week’s question is, “Cari, is a home warranty worth it?”
Well, I think it depends on who you ask. There are pros and cons to both sides. I’ve always remembered something that I read in Consumer Reports many years ago, and, in fact, I just found this quote online. “Consumer Reports has long recommended that consumers put the money they would otherwise spend on a home warranty or service contract into a savings account dedicated to product repair and replacement.” Therefore, we learned that Consumer Reports is not necessarily a big fan or proponent of them.
However, I know from real-world experience — I have had clients who are in their home day two, so obviously wouldn’t have had an opportunity to put together any sort of savings account dedicated to replacing or repairing household goods. Again, it’s day two and their HVAC completely goes kaput or some other major system in the house has a huge issue. Because they have a home warranty in place, it’s all taken care of. They’re only out the cost of the service call.
Again, there are pros and cons, and I think if you spoke with somebody who absolutely benefited by a home warranty company, or, excuse me, a home warranty being in place, they would tell you 100% they’re worth it. If you spoke to somebody who paid money for years into a home warranty and never had to take advantage of it, I think that they would say it was a complete waste of money. If you have any questions, by all means, talk to your real estate professional. I will completely share that with any client if they’re asking me about home warranties. I do give them both sides of the story.
If you have any other questions for me, non-home warranty-related, by all means, give me a shout via any one of the methods that follow on the next screen. Thanks so much. Bye-bye.