When you are shopping for a home for sale, certain sellers will offer a home warranty. This is supposed to be a way to prove that their home is in good condition upon selling it. However, home warranties aren't always guaranteed and they don't all work the same. If you are considering whether or not to take the home warranty that is included, you should know these four things:

  1. Coverage May Be Limited: First, you want to check what the home warranty covers exactly. The one that is included may only provide coverage for broken appliances, for example, while others may only provide coverage for certain events, such as damaged plumbing pipes or flooding. It's important that you go over what is covered with your real estate agent. This way, you can determine whether or not the warranty is worth the price. You will likely also have the option to add more coverage, but keep in mind that this is going to come at an additional cost. 
  2. Costs Vary: A home warranty on one home may include the same coverage that another seller is providing for their home, but the cost can vary. It's important that you go over the details with a real estate agent to know exactly what you are paying for. If you feel that you are paying too much for a home warranty, check what the advantage may be. Some home warranties might boast the same coverage but cost less because, in the fine print, they indicate that they won't provide coverage under certain circumstances. 
  3. You Don't Have a Say in Repairs: Home warranties are different from homeowners' insurance in the way that, if you file a claim with your home warranty, the company that holds the warranty in place will choose the contractor who makes the repairs. This limits your say in how the repairs are done and how much they are going to cost. For this reason, a warranty may not be worth it if it provides coverage for repairs that you know you can do yourself or have done for a cheap price. 
  4. Warranties May Not Be Worth it if the Home is Newer:  Keep in mind that if you are buying a home that not even 10 years old, you probably don't need a warranty. Most likely, you aren't going to run into any issues that will require you to use it.