Need some help from the GS. About to close on our first house, and the seller is offering to pay for a home warranty. I know I probably wouldn't pay for one myself. Should I accept it simply because they're offering? I kinda feel wrong from that stance, as I don't see the need in wasting their money, they're already helping alot on closing costs and agreed to the only things I asked for after inspection. Or is it kind of a catch all for them to avoid issues if I was a whiny buyer that complains about issues after the fact?
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A lot of sellers offer it.
I’d just accept it, after that decide if you want to continue with warranty or not.
They can come in handy, but most of the time you’ll spend more on the warranty then you would on repairs, obviously or they wouldn’t be in business.
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A Home Warranty being paid for by the seller is something which occurs in about 98% of RE transactions. They vary from a couple hundred to a few hundred dollars. Most are about $450 depending on what you select. The warranties sometimes come in handy although it may be difficult dealing with the actual servicing companies.
Don't see it as a bad thing for taking the warranty. Not sure where this property is located, but if they are helping with closing costs and other things, you are more than likely in a buyers market. I flip houses in the Dallas area and it is a sellers market here. I don't pay a dime of the buyers closing costs and sometimes don't even pay for the title insurance-the buyer ends up paying it. However, I sometimes still offer a warranty or offer $200 to help pay for a warranty.
So, take the warranty and don't fret. You may be glad you did in a few months..
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I would accept it for sure. I had one on my house I bought 7 years ago and sure enough the pool filter went out due to a crack in it like a month after closing and they replaced it under warranty and that would have cost me $1100 for sure.
Also, sometimes when you buy a house you are kind of "all in" like your spare cash is kind of tapped out for a bit due to misc. move in / fix up cost and down pymt and the last thing you need is a big repair bill hitting you when your cash is a bit lower right after closing on the house.
RD
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I've had my current home for about 5 years now and still have it. Seller paid for first year, I've paid since then. I have two old AC units and one went out. Replaced with a new one for about $800. Waiting on the second one to go out so I can get it replaced. If I didn't have the warranty the first one would have cost me a lot more than $800 . small price for peace of mind. As stated, doesn't cost the seller much at all.
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