Hidden Home Costs Can Be Huge Without Warranty

Without question now is the time to purchase your new home.  However, not every home is equal.  In today’s market, many buyers are getting what they think is their dream bargain home, only to find out that they bought a money-pit nightmare.

In her article “Beyond the mortgage payment”, MarketWatch writer Amy Hoak points out that homeowners need to “expect the unexpected.”  For instance, furnaces typically last 12-15 years and can cost anywhere from $1,000 to several thousand dollars installed, while water heaters typically last 10-12 years and can cost from $350 up to more than $1,000.  These are just two examples of major home components that wear out over time.  Other minor repairs like small leaks that are not fixed in a timely manner can lead to major bills for things like wet or rotting floors, walls and ceilings.

Experts suggest that homeowners should have at least 1% of the value of their home, but preferably 2-3%, set aside in savings for home improvements or unplanned home-related expenses.  Few owners have that safety savings, especially new homeowners, who often put most or all of their savings into their down payment.  One exception to that savings rule of thumb is for those who are buying a new home with a new home warranty.

John Wieland Homes and Neighborhoods offers the best new home warranty in the business, a 5 year - 20 year warranty that no other builder can match or beat.  Having a new home warranty can save you thousands each year compared to purchasing a resale or foreclosed home that comes ‘as is’.  In today’s market make sure you take all factors into account to find your dream home and don’t end up with a nightmare. 

Authored by, Barry Gittleman, VP of Land and Strategy for John Wieland Homes and Neighborhoods