By Team Fitch Real Estate
When buyers and sellers ask us about home warranties, the question usually comes from a place of uncertainty. Some see a home warranty as peace of mind, while others wonder if it’s necessary or worth the cost. The answer isn’t one-size-fits-all, especially when you’re navigating homes in Bend, Oregon, where property types, ages, and conditions can vary widely.
We put this guide together to help you understand what a home warranty actually does, when it can make sense, and when it may not be the right fit. Whether you’re buying, selling, or simply planning ahead, clarity around this topic helps you make more confident decisions.
Key Takeaways
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Home warranties cover certain systems and appliances, not everything
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They can be useful in specific situations but aren’t always necessary
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Understanding coverage details matters more than the warranty itself
What Is a Home Warranty?
A home warranty is a service contract, not insurance.
How a Home Warranty Works
Core Basics to Know
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Coverage Scope: Typically includes major systems and appliances
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Service Model: Repairs are handled through approved providers
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Service Fees: A set fee is usually paid per service call
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Contract Term: Most warranties last one year and can be renewed
When evaluating homes in Bend, Oregon, it’s important to understand that a home warranty is designed to address certain mechanical failures, not general wear or cosmetic issues.
What Home Warranties Typically Cover
Coverage varies by provider, but there are common themes.
Common Items Included
Typical Coverage Areas
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Heating Systems: Often included, which matters in Bend’s climate
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Electrical Systems: Coverage for certain components
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Plumbing Systems: Pipes and related elements
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Major Appliances: Such as ovens, dishwashers, and water heaters
Each plan has limits, exclusions, and caps, which is why reading the details matters.
What Home Warranties Usually Don’t Cover
Understanding limitations is just as important as understanding coverage.
Common Exclusions to Be Aware Of
Items Often Not Included
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Structural Components: Foundations, walls, and roofs
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Pre-Existing Issues: Problems that existed before coverage
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Improper Installation: Issues caused by past work
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Non-Covered Appliances: Items outside the contract scope
For buyers of homes in Bend, Oregon, expectations should be realistic about what a warranty can and cannot address.
When a Home Warranty Can Make Sense for Buyers
In some situations, warranties provide helpful reassurance.
Buyer Scenarios Where Warranties Are Helpful
Situations We Commonly See
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Older Homes: Systems may be closer to the end of their lifespan
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First-Time Buyers: Less familiarity with maintenance costs
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Tight Initial Budgets: Helps manage early ownership expenses
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Uncertainty Around Systems: When replacement timelines are unclear
A home warranty can act as a short-term buffer during the first year of ownership.
When a Home Warranty Can Make Sense for Sellers
Warranties aren’t just for buyers.
Why Sellers Sometimes Offer a Home Warranty
Seller Benefits
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Added Appeal: Makes the listing feel more complete
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Buyer Confidence: Reduces hesitation during negotiations
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Post-Closing Coverage: Helps avoid disputes after closing
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Competitive Advantage: Useful in certain market conditions
For homes in Bend, Oregon, offering a home warranty can sometimes help smooth negotiations, especially with cautious buyers.
When a Home Warranty May Not Be Necessary
A warranty isn’t always the best solution.
Situations Where It May Not Add Value
Scenarios to Consider
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Newer Homes: Systems may already be under manufacturer warranties
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Recently Updated Systems: Less risk of near-term issues
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Buyers Who Prefer Control: Some prefer choosing their own service providers
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Strong Inspection Results: Fewer unknowns reduce the need
In these cases, buyers may decide the cost outweighs the benefit.
How Home Inspections and Warranties Work Together
A warranty is not a substitute for an inspection.
Why Inspections Still Matter
Inspection vs Warranty Roles
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Inspection: Identifies current condition and issues
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Warranty: Addresses certain future breakdowns
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Decision Tool: Inspection results help determine if a warranty makes sense
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Negotiation Support: Inspection findings guide repair discussions
For homes in Bend, Oregon, inspections provide the clarity needed to decide whether a warranty adds value.
Costs to Expect With a Home Warranty
Understanding costs helps set expectations.
Typical Cost Components
What Buyers and Sellers Pay For
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Annual Premium: Varies by provider and coverage level
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Service Call Fees: Paid each time a claim is made
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Coverage Caps: Limits on repair or replacement amounts
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Optional Add-Ons: Additional cost for expanded coverage
Cost should always be weighed against the likelihood of use.
Common Misunderstandings About Home Warranties
Misconceptions can lead to frustration.
Clearing Up Confusion
What We Often Clarify for Clients
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Not Full Coverage: It doesn’t cover everything that breaks
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Provider Choice Is Limited: Service companies are usually assigned
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Approval Is Required: Not all claims are automatically approved
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Timing Matters: Repairs may take time to schedule
Setting clear expectations leads to better experiences.
How Home Warranties Affect Negotiations
Warranties can be part of the bigger picture.
Negotiation Considerations
How Warranties Are Used in Deals
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In Place of Repairs: Sometimes offered instead of fixing minor items
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As a Buyer Incentive: Helps close gaps in expectations
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During Inspection Discussions: Used to address future concerns
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Market-Dependent: More common in certain conditions
For homes in Bend, Oregon, we look at the entire transaction before recommending a warranty strategy.
Questions to Ask Before Choosing a Home Warranty
Not all plans are created equal.
Smart Questions to Ask
Buyer and Seller Checklist
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What exactly is covered?
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What are the coverage limits?
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Who chooses the service provider?
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What is the service call fee?
These questions help avoid surprises later.
How We Help Clients Decide
Every situation is different.
Our Approach With Home Warranties
How We Guide Clients
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Reviewing Property Details: Age, condition, and updates
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Explaining Options: Pros and cons in plain language
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Negotiation Strategy: When and how warranties make sense
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Setting Expectations: Helping clients decide with clarity
Our goal is to help you make informed decisions, not default choices.
Frequently Asked Questions
Is a home warranty required when buying a home?
No. Home warranties are optional and based on personal preference and circumstances.
Can a home warranty replace savings for repairs?
No. It’s best viewed as supplemental, not a replacement for planning.
Do all homes qualify for home warranties?
Most do, but coverage terms and eligibility can vary.
Contact Team Fitch Real Estate Today
If you’re buying or selling homes in Bend, Oregon, understanding whether a home warranty makes sense can help you move forward with confidence. We take the time to explain your options and how they fit into your overall strategy.
Reach out to Team Fitch Real Estate today and let’s talk through your situation. Whether you’re preparing to list, negotiating a purchase, or planning ahead, we’ll help you make sure every decision supports your goals and expectations.
Reach out to Team Fitch Real Estate today and let’s talk through your situation. Whether you’re preparing to list, negotiating a purchase, or planning ahead, we’ll help you make sure every decision supports your goals and expectations.
