Real Estate Information Archive


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Home Warranties

by The Bob Hughes Team

I was approached the other day at my annual pie giveaway ( but that is another post) by a buyer and he asked me why I did not suggest he get a home warranty when he bought his house.  His question was how many clients actually get the policy.  Only about 3% of my purchasers get a policy. 

A home warranty is basically an insurance policy which protects the owner of the house in case something breaks the policy covers the homeowner for repair.

All different types of properties can be covered including single family homes, condominiums, townhomes, mobile homes, multi unit and new construction homes.

There are different plans to suite your specific needs but read the fine print as there are loads of exceptions to each plan and not everything is covered so read all the language carefully.  Additionally there is always a deductible for every plan.  

If something does break and it is Christmas eve and you have a house full of guests you cannot call anyone you want to fix the problem but have to either call them for a list of contractors or use the list they give you.

If you are risk adverse then a home warranty plan would be perfect for you and your peace of mind.  Similar to title insurance.

Should I Buy a Home Now?

by Bob Hughes

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.

Displaying blog entries 1-2 of 2