When buying or selling a home, consider getting a home warranty. This warranty covers the cost of preparing or replacing a home system or appliance that breaks down because of normal wear and tear. When shopping for the ideal home warranty, you'll want to find the optimal blend of robust coverage and reasonable rates. Follow these secrets to lock in the best possible home warranty deal in real estate.

Do Research

Conduct thorough research into the various home warranty providers. There are many companies to pick from, each putting forth different coverage options, service charges, and limitations. Take time to explore each company, read reviews, and make comparisons between plans. Target providers who have longstanding industry presence, positive reviews, and comprehensive coverage choices. Carefully read the fine print to grasp exactly what is and is not insured. Make sure to find the cost of a home warranty with each provider, as this will be of importance as the process continues.

Ask Your Real Estate Agent

Experienced real estate agents have worked with many home warranty companies. Ask your agent for recommendations on reputable companies they have worked with and had good experiences. Agents may even be able to negotiate a discount with their preferred providers. At a minimum, get insight from your agent on what coverage you really need.

Compare Multiple Quotes

Don't just go with the first quote you receive. Contact three to five major home warranty companies and get quotes for comparable coverage. Compare costs, coverage, and exclusions side-by-side. This shopping around can potentially save you hundreds of dollars per year. Be sure to get quotes specific to the age and equipment in the home you are buying or selling.

Look for Discounts

Many home warranty companies offer discounts that can significantly reduce your costs. Common discounts include new home discounts, multi-year plans, group affiliations, and more. Ask each company what discounts you may qualify for. Plan memberships like AARP and trade associations like the National Association of Realtors sometimes have exclusive promo codes for home warranties.

Negotiate with the Seller

If you are buying a home, consider making the seller pay for the home warranty plan as part of the negotiations. Most sellers will pay for a one-year home warranty to give the buyer peace of mind and help close the sale. Just make sure the plan meets your needs.

Pay Annually vs. Monthly

Most home warranty companies charge more for monthly payment plans compared to a single annual payment. Pay in full to get a better deal. Also, remember to cancel before the plan automatically renews. Even if you plan to keep the warranty, research all options before it renews. Put a cancellation reminder on your calendar so you don't forget.

Consider the Service Fee

Home warranties include a service fee, usually around $75, that you pay per repair visit. Companies with higher service fees may have lower upfront costs. Do the math to see if you come out ahead over multiple repairs. Companies that offer low or no service fees provide more long-term value.

Follow Up After Service Calls

After you have repairs completed under your home warranty, follow up to provide feedback on the service experience. This lets the warranty company know if you have any issues. Positive feedback can also sometimes earn you discounts on future renewals.

By doing your research, asking questions, comparing plans, and negotiating, you can get the most comprehensive home warranty coverage at the best price. A little effort upfront saves you a lot over the long run when those unavoidable appliance breakdowns and system failures occur. Protect your budget and have peace of mind by securing the best home warranty deal possible.