Should I Buy A Home Warranty When I Purchase A Home?

Should I Buy A Home Warranty When Purchasing a House? - Real Estate 101

Last Friday, I posted an article defining a home warranty. This week I will answer the question, “Should I buy a home warranty when I purchase my home?” If you asked 10 buyers or real estate agents I’m sure the answer to the question would be split.

When you purchase a home you are spending hundreds of thousands of dollars, if not millions. The cost is relatively cheap, somewhere between $250-$550 depending on the coverage and if it has a pool or spa.

I suggest you purchase the warranty for two reasons. One, you will have piece of mind. Two, even if you use it once – you will probably get your money’s worth. Don’t try to save a minimal amount when you are purchasing the most expensive investment of your life.


The problem most buyers and agents have is that most home warranty companies will not honor certain claims and will definitely not pay for preexisting problems.

On the other side, it would be wise for a seller to pay or split the cost of a home warranty because even if the home is sold AS-IS, they don’t want the hassles of getting a call from their agent saying there is a problem.

Note: Even if a home is sold AS-IS, the buyer may be able to go back to the seller if the problem wasn’t disclosed, unless it’s a trust or probate sale.

Some agents will surprise their buyers by buying a home warranty for the clients as a gift.

I once had a buyer who is very educated tell me that he didn’t see the value of buying a home warranty and the money would be better spent on a future problem.

Thank God I purchased the warranty for them because after closing escrow on a Friday, when they arrived on Saturday with the moving truck their garage was soaked EVERYWHERE because the water heater blew up.

The home warranty picked up the cost and my buyers were very happy.

Needless to say, that following Monday I got a very nice call thanking me for the warranty.

I hope this story helps you in your decision to whether or not to purchase a home warranty.

David “Tap” Tapper, Realtor



Post Specific Disclaimer: All home warranty policies are different. Please make sure you and/or your realtor have read over the warranty terms in their entirety before purchasing a home warranty. I, nor Team Tapper, hold any responsibility for the information provided in this article.

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