Are Home Warranties Worth The Money For Home Buyers?

Will home warranty companies top the list of companies that receive the worst grades on Angie's List for a seventh straight year? Home warranty companies consistently perform poorly, according to Angie's List members.

Such consistently low grades begs the question of whether home warranties are worth the cost. Home warranties are being pushed more often by at least one large traditional real estate firm in Massachusetts; however, as of right now these products are not common in Massachusetts.

If a seller wants to purchase a home warranty on behalf of a buyer, no reason for a buyer not to accept, but a buyer should know it's value is probably quite limited. In addition, it is very likely the seller spent less than $500 for a one-year warranty. Sellers will try to use the home warranty as a negotiating tool, especially with homes that have old systems, but buyers need to understand the limitations of coverage.

It is important to note that home warranties that are purchased from insurance-type companies are entirely different than a warranty provided by a builder when you purchase new construction. 

Before a buyer decides to purchase a home warranty, he or she may want to watch this approximately one-minute video from Angie's List. 

 Learn more about home warranties on the Buyers Brokers Only, LLC Web site.