By Mel Dorman, April 28, 2021
Buying a home is a major investment and comes with some important responsibilities. Unlike renters, a homeowner is responsible for the maintenance and upkeep of the home as well as repairing the unexpected problems that can occur.
While we always encourage an inspection when buying a home, the inspector can only verify that certain equipment, such as a furnace, is working at the time of the inspection. What if that same furnace stops working 2 or 3 days after you move in? This exact scenario is why it is a great idea for new buyers to consider a home warranty policy when buying a house!
What is a home warranty?
A home warranty is usually a one-year service contract that covers the repair or replacement of a home’s major systems and appliances. There are many companies and policies to choose from, but all are similar in the way that they operate.
How do they work?
Once a buyer chooses a policy and the home is covered, any problems will be addressed by calling the home warranty company directly. The warranty company will then send a qualified technician to your home to evaluate the problem. The tech will repair the unit or, if the equipment is not repairable, they will replace it with a similar model.
What does it cost?
The cost to the buyer is usually far less than the equipment itself, as they only pay the annual fee as well as a service call fee for each visit. Depending on your location, policy, and the company you choose, this could be as low as $75 per service call.
How to choose a company and policy…
When choosing a home warranty company, it is best to find one that does not require service records or inspection reports because those may not be available. Look for companies that have a great local reputation, are easy to work with, and have a history of being honest and upfront. If you are having trouble choosing a reputable company, be sure to ask your realtor for their top suggestions!
What does a home warranty cover?
Standard coverage depends on the home warranty company. Most include major items such as plumbing system/stoppages, the water heater, heating system, ductwork, the electrical system as well as a variety of smaller items like toilets, garage door openers, attic exhaust fans, doorbells, re-key, etc. As a buyer you also have the power to upgrade or customize your coverage to include appliances like the oven & range, dishwasher, or refrigerator. You can even add on individual options such as roof leak coverage!
For the most accurate and up-to-date information, be sure to contact a home warranty company directly or to visit their site. Sample brochures are readily available on most websites.
Mel Dorman
Broker | OR & WA
She/They
Ten years ago, Melissa was living in a slum in Kolkata, India, helping over 200 women escape sex trafficking by providing alternative work at a social business.
It was there she discovered her passion for financial education as a means of empowering people to move out of poverty. After graduating from UCLA with a Masters, Melissa spent 5 years working as a Social Worker; assisting clients facing homelessness, in jail, or at a psychiatric facility.
As much as she loved the work, imagining saving for retirement on the meager salary of a social worker was becoming grim. That's when Melissa discovered "passive income." In no time, she fell in LOVE with real estate as a vehicle for wealth. Soon after, Melissa began locating off-market multi-family properties to purchase through creative financing strategies and win-win opportunities. Two years into investing, Melissa quit her day job as a Social Worker to become a full-time broker and investor. Initially, she was drawn to people in difficult circumstances, so she developed extensive experience assisting families facing foreclosure, short sales, and probate. Melissa is well versed in helping her clients overcome complex real estate challenges.
Currently, Melissa is teamed up with Super Broker, Yascha Noonberg at Living Room Realty. Together they assist clients to achieve their real estate dreams, including how to strategically buy and sell a personal residence to maximize profits. Far from the slums of Kolkata, her greatest passion now is empowering other working professionals to develop passive forms of income through buying multi-family properties in Portland.
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- T: 503-567-4697
- melissa@livingroomre.com
