Video Summary

Is a home warranty worth the price when purchasing a home?  Well, that is a real great question, and I do not think I have a good answer for it.  I guess if any of the appliances go out, the answer is yes.  If none of the appliances go out, well, the answer is no.

So that is the nature of the beast whenever you are talking about insurance.  Any time that you get insurance, well, if you do not have a casualty loss, you have paid the premium and therefore it was not a good deal.  However, you are getting the home warranty or buying the home warranty to have peace of mind so you do not have an unexpected expense.

If you want to further analyze the situation, look at how old the appliances are.  And if they are relatively old, there is a higher possibility of them breaking down, well then you can go ahead and buy a warranty so you are not surprised later on.  I suggest that you really understand the warranty so you know how much it is going to pay, whether you have to pay a service call or any of the deductibles, and whether there is a maximum they have to pay, let’s say, for an air conditioning system.

Also look at the value of what you are trying to insure against.  As far as an air conditioning system, you are looking at thousands of dollars.  If you are looking at a refrigerator, well, that could be depending on the refrigerator – could also be in the thousands.  And then look at how long the warranty runs for.  Because if you are paying $500.00 to insure a $1,000.00 refrigerator or a couple of thousand dollars worth of appliances, well that is a pretty steep premium to be paying for that.

So hopefully I have answered your question, and I do not think there is a cut-and-dry answer.  You need to look at the circumstances, and what your tolerances are as far as whether or not you could stand the surprise or have the money to pay for it.  You might also ask that the seller provide you with the home warranty whenever you purchase the home and negotiate that into the contract.

If you have any more questions about it, please give me a call at 727-847-2288.

Video Summary

Can a home equity loan be used to purchase investment property?  The answer is yes.  You can use the proceeds from a home equity line of credit to purchase investment property.

Once you obtain this line of credit on your home, the bank does not monitor what you use the money for.  You can use it for entertainment, to pay off credit cards; you can use it for anything you like.  The downside of it is, you put a mortgage against your home.  So if you do not repay it, your home is at risk.

So yes, you can use the proceeds from your home equity line of credit to buy investment property, or for that matter, to take your bride out to dinner.

If you have any questions about a home equity line of credit, give me a call at 727-847-2288.

Video Summary

Do property repairs have to be completed by the seller before closing?  Usually these repairs arise as a result of an inspection by the buyer or they may possibly be as a result of a final walkthrough whenever there has been some kind of loss or something discovered about the property and the sellers agreed to make these repairs.  Ideally it would be great to have the repairs done prior to closing; however, there is some urgency so the repairs many times are not done before closing and how you handle that is you simply escrow the money or give the buyer an allowance for these repairs so that the closing can go through.  The buyer can take care of doing the repairs themselves and the seller is relieved of any kind of responsibility.

So if you have any problems with real estate transaction, give me a call at 727-847-2288.