There are few things more exciting for first-time home buyers than closing on your first home. But even before you begin to settle in, it’s important to remember that the costs of home ownership don’t stop once you’ve closed. This is a common mistake many first-time home buyers make, and it can come with some negative financial consequences. A home warranty can prevent you from making this mistake and protect you in these 3 ways.
Home warranties can reduce the cost of home ownership
For many first-time home buyers, the down payment is the most expensive upfront cost of home ownership. In fact, the median price for a home in the United States is currently $320,000. Even a 5% down payment would cost $16,000 up front, plus closing fees. After putting down such a huge chunk of money all at once, it’s easy to forget the costs to maintain your home. A home warranty from 2-10 Home Buyers Warranty (2-10 HBW) can reduce those costs drastically.
Consider your HVAC system, which controls your home’s heating, air conditioning and airflow. The average cost to replace this system without a home warranty is around $6,400 and can often be even more than that. If your HVAC system were to break down, it could be difficult, if not impossible, for you to address that out-of-pocket cost without taking on more debt.
With a home warranty from 2-10 HBW, it’s an entirely different story. Rather than paying the full cost of big repair or replacement all at once, a home warranty lets you file a claim and pay a much, much smaller Service Fee. Then, as long as the breakdown was caused by routine wear and tear, 2-10 HBW would cover the cost to repair or replace the item, up to the clearly stated dollar limits in your Service Agreement.
Even on less expensive appliances like your refrigerator, which can cost about $340 to repair and $1,250 to replace on average, this coverage can save you a lot of money. Plus, a home warranty gives you the added benefit of working with a qualified and approved Service Contractor in the 2-10 HBW network, saving you search time.
A home warranty helps you track your budget
One of the most important parts of home ownership is tracking your budget. If you’re like most first-time home buyers, you’ll have monthly mortgage payments and utility bills, along with your other fixed expenditures like student loans and car payments. If you’re moving from an apartment, you might find that certain bills, such as your water bill, may be higher than you’re used to. And this doesn’t even consider common maintenance costs you’ll face as a homeowner.
With a 2-10 HBW home warranty, you can more accurately track your budget. Whether you pay annually or monthly for your home warranty plan, you’ll know the cost before something breaks down. Instead of having to figure out where the money to address an expensive breakdown will come from, you know right away. All you’d have to do is file a claim, pay your set Service Fee and have a professional address the problem. It’s much easier to budget for the unexpected when you have a home warranty.
And with nearly 7 in 10 homes experiencing a system or appliance breakdown in any given year, it’s more likely a matter of when, not if. Having budgetary protection can be extremely valuable for first-time buyers.
It can make your home more move-in ready
Most first-time home buyers aren’t looking for a renovation project. You know you’re going to pay a handsome price for your home, so you want it to be as move-in ready as it can possibly be. A home warranty can make your home more move-in ready by protecting you against common breakdowns. Instead of worrying about when that 20-year-old water heater might break down, a home warranty gives you the peace of mind that when it does, you’re covered.
On top of the financial coverage a home warranty provides, 2-10 HBW can offer you a Maintenance Guide as part of your warranty plan. This Maintenance Guide can help you maintain your home’s systems and appliances, extend their lives and prevent breakdowns. Keeping your home well maintained makes home ownership more enjoyable and more affordable.
A home warranty is especially worthwhile for first-time home buyers. It reduces the constantly rising costs of home ownership. It helps you budget without wondering where you’ll get the money to address breakdowns to key systems and appliances. And it lets you get on with living life as a homeowner rather than having to dedicate even more time and money to making the house you bought a home.
2-10 HBW offers the most comprehensive home warranty coverage for homeowners. Let us help you protect your home.