A Home Warranty May Be a Good Idea for Your Home

The home warranty has at some points been a bit confusing for buyers. They wonder what it is and what does it cover? How is it different from homeowner's insurance? Some feel the home warranty may be a waste of money and others end up using it right away and were thrilled they got one. Essentially, it is similar to an auto warranty you get with your new car. The policy will cover some items that break in your home, but not others. Deductibles generally apply.

The Real Estate Purchase Contract has a spot right in the contract that spells out whether you wish to have a home warranty as part of your closing package. The Home Warranty section in the Utah approved Real Estate Purchase Contract is section 10.1.

Most agents representing a buyer will recommend asking for a policy to be bought for the buyers and paid for by the sellers. As a buyer’s agent, I have not always recommended this to be the case. If the buyer wants to get aggressive for any reason and place the best offer forward (especially in a bid war), they may not ask for a home warranty. Each situation is different. 

I would recommend that you ask your agent to give you a few reputable companies to review. Get a copy of their policy and see what items they cover, what their deductable is, and how long the policy will last. Most policies last a year from date of purchase. The companies will generally send you a form to renew your policy at the end of the year if you wish.

 You can buy extra coverage for certain items like hot tubs, pools, HVAC systems, etc. Make sure you review the policy against the home you are buying to get the most efficient coverage possible.

Next post – Flood zones and flood insurance

Should you get a Survey for Your New Property?

Should you survey your property? Is it the seller’s responsibility or the buyer’s?

Every state is different and it is best to ask your Real Estate representative prior to signing a purchase contract. In Utah, it is a “buyer beware” thought process. This essentially means that the buyer takes on the responsibility of paying for all of the inspections, surveys, etc., as part of the buying process. If you want to request the seller provide you with a survey, then it’s good to make that part of your requests in your purchase contract. It is the buyer’s prerogative to ask.

I suggest you ask for references on local surveyors and get quotes from three different ones. I’ve seen pricing on the same parcel go from $700 to $3,000 depending on the surveyor. You also need to make sure your surveyor is giving you the type of survey you need. A metes and bounds only? Add survey caps in? Topographical lines added? What kinds of features do you want listed? Fences, improvements, flood zone lines? Make a list and ask your surveyor what things he/she might suggest you add as part of your survey.

I highly recommend surveys, especially for raw land parcels or lots outside of subdivisions. Homes and lots inside newer subdivisions should have recent surveys done. In these cases, it may be good to get a surveyor to highlight or place points if they are missing.

I’ve seen land parcels where a neighbor built half their cabin on the adjacent parcel. I’ve seen surveys where the neighbor built their rock wall fence and driveway partially onto the neighbors yard. I’ve had properties surveyed where the surveyor found major mistakes from the previous surveyor and we had to spend an extra couple of weeks correcting the line discrepancies. If there is any question at all where your lot lines are PLEASE GET A SURVEY! It could save you thousands of dollars, court time, headaches and grief. 

If you are concerned about your surveyor, I'd recommend getting references, checking to make sure their license is in good standing, etc. The best thing to do is ask your Realtor. They, no doubt, will have various referrals to suggest.  If you are using an engineering firm to build your home, they will also have a survey crew as part of their team.

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