6 Ways Home Warranties are Supporting First Time Home Buyers
Brooklyn, NY, 23rd, Nov 2021, ZEXPRWIRE, Buying a home is one of the biggest financial decisions most people will make. The housing market in the U.S. had a surprising rebound in the latter half of 2020, which resulted in a record number of first time homebuyers. Low interest rates made it possible for renters to become owners, and the remote work movement paved the way for people to relocate.
With the uptick in real estate transactions, one thing became clear: buyers are getting smarter about investing in systems that protect them from impractical housing costs. For people who’ve saved for years to pay a downpayment, the last thing they are willing or able to face is a major repair or replacement cost for home systems and appliances. That’s why, for many, the smartest thing to do as a first time homebuyer was to buy or order a home warranty.
Home warranties benefit first time homebuyers in numerous ways.
1. Protecting Buyers Who Didn’t Buy New Homes
A first way that home warranties “have your back” is they offer coverage for homes that aren’t brand-new. Between construction costs and supply chain delays, many residential real estate transactions have been pre-owned homes. Homes like these often have systems or appliances that are ineligible for manufacturer warranties, simply because they are too old. One of the key benefits of a home warranty plan is that it covers older systems and appliances. While not all contracts are created equal - and homeowners should thoroughly understand what can and cannot be covered - this arrangement can provide major savings, not to mention peace of mind.
2. Protecting Buyers Who Don’t Have Cash On Hand
Even having a plumber out to your home can cost anywhere from $175-$450, and the average cost to repair something like a leaky pipe can be hundreds, if not thousands of dollars. First time homebuyers may not have cash on hand to take care of costs like that, nor may they be able or willing to finance repairs. Home warranties offer a third option, providing coverage for basic and standard repairs, and even replacements, for covered items.
3. Making Home Management Costs Predictable
Many first time homebuyers were able to make the purchase because they are budget-conscious. The average income of a first time homebuyer is $67,342, with income numbers on both sides of that median. This may mean that households are classified as middle-class, and likely don’t have thousands of dollars tucked away for a broken water heater or faulty wiring. Even if that nest egg does exist, managing a home according to a budget is more predictable with a home warranty to cover major costs. While home warranties are not the same as homeowner’s insurance, they similarly provide a layer of protection, if it’s ever needed.
4. Protects Against Previous Owner Mistakes
First time homebuyers may be new to managing appliances or systems. Rather than calling a landlord, they are now responsible for home maintenance tasks. Regardless of how quick they learn those skills, a purchased home can bring all kinds of pre-existing issues, depending on the household management style of the previous owner. Many home warranty contracts include items in an “as-is” condition, and may not even require inspections for coverage to begin. This means that regardless of the condition of some items, and the tasks that were or weren’t done by a previous owner, a home warranty holder can enjoy some level of protection.
5. Provides Quick Service
Some of this benefit depends on the home warranty company, but many national companies have extensive networks of vetted service providers. For a homeowner who’s new in town, or new to homeownership, this can be a boon. If something breaks down, rather than scouring the internet and reading pages of reviews of plumbers, electricians, or repair people, the policyholder can simply contact the home warranty company and get quick service.
6. Can Provide Additional Perks
A last benefit for first-time homebuyers isn’t just that a home warranty company can provide quick, reliable service, but that they may also cover the costs associated with a breakdown in the home. For instance, some home warranty companies will cover a certain amount of food spoilage if a refrigerator goes bad. Others may cover the cost of a hotel, if a breakdown causes a home to be uninhabitable. Whatever the case, many offer additional perks of coverage options that provide the ultimate peace of mind.
Home Warranties are a Must-Have for First Time Homebuyers
First time homebuyers are fortunate: they get the joy and responsibility of homeownership, which is something to celebrate, but also comes with challenges. Home warranties make life easier. They mitigate risk and ensure that a first time homeowner has a line of protection if something goes wrong. This takes appliance or systems breakdowns from the realm of a catastrophe to a mere inconvenience.
For protection they can trust, many homeowners turn to Elite Home Warranty, a service-oriented company that puts homeowners first.
Elite Home Warranty
Brooklyn, NY. USA