Do I have to get a home warranty when I purchase a house?

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A lot of people get confused about home warranties when they purchase a house. Many real estate agents talk about warranties like they are a requirement during the transaction. That’s actually not true. Some agents push home warranties more than others – either because they have had positive experiences with warranty companies in the past, or sometimes because their office receives a bonus for selling warranties on every home transaction. Agents used to receive a commission directly for selling a home warranty, but this practice is now a RESPA violation. Even still, many agents still continue to push warranties to all of their clients.

To answer this question, no you don’t need a warranty when you purchase your house. But if you would like to protect yourself from unforeseen breakdowns in your new home, it may not be a bad idea. Home inspectors will usually tell you if an appliance or system is broken, but they aren’t always a good judge of whether or not you’re likely to experience trouble in the upcoming weeks. New and old houses can have a lot of problems for their new owners. A home warranty just might be the protection you need for your new investment.

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