Before purchasing a home today, smart Vancouver buyers have a home inspection. The inspector alerts them to issues he or she can see or determine through testing, and then buyer and seller re-negotiate if there are structural or safety issues or if the inspector notes that something is of an age or condition where it might be expected to fail within a short time.
Can the inspector see and predict everything? No.
The reason appliances are sold with a 1 year manufacturer's warranty is because sometimes even brand new equipment is faulty. There are things going on with the interior mechanism that neither a homeowner nor an inspector can see or anticipate.
Are most new homeowners financially prepared to meet the cost of replacing a major appliance? No.
Many new homeowners today spent all they could on the down payment in order to get a better interest rate and a lower monthly payment. A major repair would send them deep into credit card debt.
Enter the home warranty.
For an annual fee of a few hundred dollars, the homeowner's liability for the cost of repairs is limited to a fee of about $75 to $125 per incident. Compare that to a $6,000 furnace replacement or an $800 water heater replacement and the value is clear.
For Vancouver home sellers including a home warranty in the purchase is a good marketing move. It's a small thing that just might be the deciding factor in a choice between two homes.
For Vancouver home buyers, purchasing a home warranty is an investment in peace of mind – knowing that if something unforeseen happens, they won't be going over their heads in credit card debt to handle it.