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What is a Home Warranty? Home Warranty Cost | Should I Purchase a Home Warranty for a Condo?

662 views · Published 19 December 2016 · 4:28 · Indexed 4 November 2026

Channel: Matt Leighton · 2016 · News & Politics

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In this video, Arlington VA real estate agent and Realtor Matt Leighton discusses the home warranty policy when purchasing a condo. 

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When you put in an offer on a property to purchase, you have the option to purchase a home warranty policy. But if you are purchasing a condominium, is the home warranty policy worth it?

First off, what is a home warranty policy?

A home warranty protects you from the high cost of unexpected failures to the major systems and appliances in your house or condo by repairing or replacing covered items that break down due to normal wear and tear. 
Source: http://www.onlinehsa.com/homeowners/home-warranty.aspx

A home warranty policy usually covers you for the first year after you move-in.

How much is a home warranty policy?

Policies vary in price. The base price is usually around $450. This will cover some or all of electrical, plumbing, appliances, washer/dryer, hvac, and maybe some other elements of the condominium.

Is a home warranty policy worth it for condo buyers?

No. Probably not. It's just one year of protection. And in condos, there's not much that can go wrong. If you notice issues with an appliance or system, ask for money on the home inspection.

You're probably not going to have a major expense in the first year. You very well could. They usually fall into two categories. The first would be an issue that could have been remedied during the home inspection. 

Waiving Your Home Inspection WILL Win You Your House
https://www.youtube.com/watch?v=YKBNYKaQ5sY

And the second issue that could come up is an emergency repair. Obviously, these things happen. Is it likely to happen in your first year? Probably not. Could it happen in the 5 years that you live at your condo? Potentially. 

Still, point being is once you do the home inspection, you should have a good idea of the health of your systems and hedge your bets on whether you think the systems will last or if you should ask for money or replacement of a potential system. 

Home warranty policies are not worth it for condo buyers. You will probably not see the value of the $450 that you will have to pay upfront during settlement. 

And if you do pay that amount, you will almost wish for something to break so that you can redeem a new appliance. So you're essentially rooting for your own demise. Not good.

If you're in a case where you are not competing against any other offers and you are sensing a desperate seller, you may be able to get the seller to pay for your home warranty.

However, as a listing agent, if I see that a contract has been submitted has the home warranty paid for by the seller, it is just one more thing that will make that offer look worse than competing offers. 

In addition, some title companies may pay for the home warranty themselves. Ask your title company if they are willing to pay for this charge. You may be surprised. 

How to Choose the Best Title Company for the Purchase of Your Home
https://www.youtube.com/watch?v=WLNUxri3IVA

Video location: Colonial Village Condos - Arlington, VA
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Matt Leighton - Arlington VA Real Estate Agent 
Licensed in VA and D.C.
Century 21 Redwood Realty 
1934 Wilson Blvd Arlington, VA 22201 
https://youtu.be/k8gXfhxqWE0

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