04/01/2025
HOME WARRANTIES - Good or Bad?
đź‘Ť I have a home warranty and I highly recommend them. However, be very careful when choosing. As with anything, some are better than others.
As a Realtor with 25 years of experience since 2000, I have encountered, bought from, and collaborated with numerous home warranty companies. The advertisement below is incredibly misleading (where it says read more) The claims made in the ad do not reflect the reality of the final narrative once you enter all your personal info.
It's from a specific company (I won't mention the name) that offers monthly rates no better than other providers, and they are not specific for seniors citizens. (I did the whole completion of info thing to find out) In fact, their rates are identical to what I pay for my home warranty with Old Republic. Having an older home makes having a warranty beneficial because of the cost savings. I've needed to replace a heat/AC unit, water heater, microwave, and more in my home, and I was grateful for my home warranty. However, these ads are deceptive and frustrating.
In fact, none of what they say aligns with anything I have ever encountered before. In the process of trying to sell their business, they attempt to portray Realtors as sneaky manipulators who rely on home warranty companies for business. This is so far from the truth. We operate under strict rules and regulations to ensure compliance with laws and uphold ethical standards.
👉First, I have never heard of a home warranty that charges $150 a month. That is unless you have an ADU (additional dwelling unit) on your property or something similar. In my case I have an apt above my garage, so that would be an extra cost.
👉Also, I know of no home warranty with zero co-pay. The co-pay is usually 75-125. Having no co-pay was a huge red flag.
👉Furthermore, how does anyone truly know what their neighbors pay for appliances and repairs? Do they share that information every time something happens? I seriously doubt it.
👉Additionally, it's hard to understand how this would cut agents out of deals if clients aren’t informed about this so-called great site. I’ve never heard of it, apart from the incessant scam calls I receive. The home warranty plans don't dictate the deals we secure. In fact, as an agent, I frequently cover the first year's costs for my clients.
👉Lastly, I find it hard to believe that a licensed home inspector would provide that information if they're true professionals. It would seem to pose a potential conflict of interest.
‼️Ultimately, this seems like just another tactic to gather contact information for the benefit of whatever company this is advertising for. (they don't tell you anything unless you enter contact info.) Unfortunately, I’m sure many people might be misled by it.
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