Advice needed - home warranty - first time home buyer

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Hi Friends,

  We just closed on our first house two weeks ago. Moved in the house and already found dishwasher not working and master bathroom toilet not working. We didnt know about home warranty when we closed and now we are thinking to buy. Please advice if it is good to buy home warranty or fix these issues ourselves? Also please suggest good home warranty companies for michigan area. Since we are new to home purchase dont know what is involved and our home is 1973 constructed. Appreciate all the replies. The heater is about 17 years old and AC unit was not tested in home inspection as it was a very cold day. We are having problems with our garage door sometime it opens sometimes it gets stuck. 

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Are you sure you don't have home warranty? The seller usually pays for home warranty without the buyer having to ask for it.

No we dont have it, we got for sale by owner and they didnt pay for home warranty.

Home Warranties usually cost $400-$500 and they will a have deductible (usually $50)for each call. Plus they have a bunch of exceptions and qualifications on older appliances. It's usually not recommended unless the seller is paying for it. Instead put the money in a savings account each year and over the long run you will be ahead.

What were you expecting for a house that's almost 50 years old? I doubt that a home warranty will do you much good. If original, most if not all the appliances will need to be replaced. Faucets and toilets will leak or, as you posted, not work. Do a search for "What every homeowner should know". Buy a book or several "How to" and a basic set of tools. (Every home should have a plunger and a snake.) Whether you do repair work yourself or hire others to do the work you need to know enough basics such as shutting off water and gas.

Bought new appliances so dont need to cover the appliances, need warranty for other stuff. So its not advisable to buy it? Yes we will learn and get to do things, but in the process we needed some advice on warranty

tamilgirl77 said:   Bought new appliances so dont need to cover the appliances, need warranty for other stuff. So its not advisable to buy it? Yes we will learn and get to do things, but in the process we needed some advice on warranty
The "other stuff" should have been factored in when you bought the house. Your housing budget needs to include both a maintenance and a replacement fund. A home warranty is not a substitute. 
FYI, some repairs require a building permit. Check up on the building code requirements of your city. Whenever a building permit is pulled my city requires a house be brought up to the latest code revision. I doubt a home warranty would cover, beyond the initial repair, the additional costs to bring the remainder of your home up to code.
 

I wouldn't recommend getting a home warranty either.  Some home warranty companies (or all?) are shady. Just save your $$ to cover repairs.

This is my experience 20 years ago when we bought our 13 year old house.... The seller provided a HW policy that had a $50 copay (or whatever it was called.)  Our water heater sprung a very small leak within the first year.  We called the home warranty company who sent out a plumber.  The plumber removed our water heater then called the HW company.  The HW company told us that we had to bring our water heater hookups up to code and that would cost us $300 +  the copay.  If we didn't want to pay that they would reimburse us $150 for the water heater and we would have to replace it ourselves.  If they told us this before the plumber removed the water heater, we may have shopped around cause it was only a small leak.

We went ahead and paid the $350 to get our water heater installed.  This wasn't a bad price, but we felt taken advantage of.  The plumber didn't pull a permit (the city requires one) and I don't know if the extra things he did were really necessary.

When our policy expired, we did not renew.  We just made sure we had adequate savings to cover repairs, which over the 20 years have been very few.

Thank you all for the great advice, we decided not to go with warranty after reading lots of horror stories about them



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