As you begin the first-time home buying process, you might see many different terminologies that spark confusion. How are you expected to know the ins and outs of home buying when this is only the first time you are doing it?
Thankfully, that’s where BSR Realty Group comes in. Our real estate company in Jupiter, Florida prides itself on experience, knowledge, and educating our clients during the first-time home buying process. We’re here for you and to answer any and all questions related to home buying!
One question that always seems to have everyone scratching their heads is, “What is a home warranty?” There are so many different things to prepare yourself for buying a new home, and a home warranty is just one of them.
So, what IS a home warranty? Here’s a quick breakdown to help you during your search:
Home Warranty Definition
A home warranty is a contract that covers service, repairs, or replacements of appliances and systems within a home after a sale closes.
Pending the contract, your home warranty should include coverage of electrical, plumbing, air conditioning and many other home appliances. You can customize your plan and add in customized options such as a pool or hot tub.
Home warranties are put in place to protect your home appliance systems from potential breakdowns caused by typical wear and tear. It’s essential and needed during the home buying process to protect yourself and ensure you and your home are good to go given unexpected situations.
Why Do I Need a Home Warranty?
This is completely up to you. Some people recommend investing in a home warranty; others prefer to keep a balance in an emergency fund in case unfortunate situations arise. With a home warranty, you can have peace of mind knowing you are covered if and when something happens. Without a home warranty, you run the risk of unexpected replacements and hundreds or thousands of dollars in potential repairs. While they are expensive, some people see home warranties as worth it. Others, prefer to save independently and tackle those repairs as they come. It’s up to you as a homeowner to choose your preferred path.
Are Home Warranties Like Home Insurance?
A home warranty is not the same as home insurance; they are two different entities. For example, a home warranty plan will take care of the service if your refrigerator breaks. Home insurance will cover you if your home is damaged from unforeseen events such as hail, hurricanes, or fire. Both are equally as important to your life as a home buyer and are strongly encouraged as you go through the first-time home buying process.
Interested in learning more about home warranties? Anxious to get started in the first-time home buying process? Give BSR Realty Group a call today! We look forward to helping you find your first home.