Chic vs. Geek: Home Warranty

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A client who bought a house last year asked us if it was worth it to invest in a home warranty. Here’s what we told them…

CHIC (Pearl)

You don’t know what you don’t know, which is why it makes sense to buy a home warranty when you move into a new house. You never know what unexpected trouble is lurking below the surface. Like insurance, a warranty gives homeowners peace of mind, However, buyers need to take the time to closely review the different types of coverage described in the contract and understand the limitations. Premiums, exclusions, and caps on benefits can vary widely. Buyer beware! (Cue spooky Halloween music)

GEEK (Kevin)

From personal experience as a homeowner, after living in the house for a while, you’ll get to know what works, what doesn’t, and what really needs fixing. Like Pearl suggests, you could pay annual home warranty premiums to get some peace of mind. Or you could consider saving extra dollars in an emergency fund for unexpected expenses that arise after you move in. Depending on your household budget, it may be a better option than paying premiums to cover repairs that may never be needed.

Gratitude: Client Success Story

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Yesterday, we helped these clients close escrow and become homeowners after beating out a field of 41 buyers on a very competitive property. The family is originally from Texas and were surprised by Silicon Valley home prices. At first, it was hard to swallow. But after working with us, they found a home for their growing team! We are so grateful that we were able to make their dream a reality. They are now one step closer to building their wealth for their future.

As you can see, Kevin was super excited for our new friends!

Geek's Number Talk: High rates lead to price cuts

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Nearly 70% of home listings in the San José metro area went above asking price in August 2021, Just one year later, that number fell to 38% for the same month, and year-over-year price-cut percentages doubled to 25%. The Chronicle has more about how rising mortgage rates are impacting the local market.