Owning a home brings with it a sense of pride, independence, and investment security. Yet it also comes with the responsibility of upkeep, maintenance, and unanticipated repair costs. For many homeowners in Traverse City, Michigan, a key question that arises after closing—or when preparing to sell—is: do you need a home warranty? Understanding what a home warranty is, how it works, and whether it provides meaningful value in a four-season climate like northern Michigan is critical to making an informed decision.
Molly Buttleman, a trusted real estate professional in the Traverse City area, frequently fields questions about the benefits and limitations of home warranties. Buyers often wonder if they should add one to their new purchase, while sellers sometimes consider offering a warranty to make their property more appealing to prospective buyers. While there’s no one-size-fits-all answer, several important factors can help determine whether a home warranty aligns with your real estate goals and homeownership lifestyle.
What Is a Home Warranty?
A home warranty is a service contract that covers the cost of repairing or replacing certain systems and appliances in your home due to normal wear and tear. It typically includes coverage for the HVAC system, plumbing, electrical systems, water heaters, and major kitchen appliances like dishwashers, stoves, and refrigerators. Optional add-ons may include coverage for well pumps, septic systems, washers and dryers, or even swimming pools.
Unlike homeowners insurance, which protects against external disasters such as fire, flood, and theft, a home warranty is intended to cover internal breakdowns. When a covered item fails, the homeowner files a claim, and the warranty provider sends a service technician to assess and repair the issue. The homeowner typically pays a small service fee—commonly between $75 and $125—while the warranty covers the rest, up to a capped limit.
When asking do you need a home warranty, it’s essential to distinguish the protection it offers from insurance. They serve very different purposes, and homeowners in Traverse City often benefit from having both.
Who Benefits Most From a Home Warranty?
A home warranty can be especially valuable for buyers of older homes, which are common throughout Traverse City’s established neighborhoods. These properties may have aging HVAC units, older plumbing, and outdated electrical systems that, while functional, are more likely to fail due to wear and tear. First-time buyers who may be unfamiliar with the costs of home repairs may also gain peace of mind knowing that a service call for a broken dishwasher or furnace won't derail their budget.
Sellers, too, sometimes offer a one-year home warranty as part of a real estate transaction. This can reduce buyer hesitation, particularly if the home has older appliances or systems. It’s also a way to stand out in a competitive market. From a buyer’s perspective, it’s natural to wonder: do you need a home warranty if the seller offers it as part of the deal? In these cases, the buyer receives an added layer of protection at no immediate cost, making it a favorable inclusion.
Vacation homeowners in Traverse City may also consider a home warranty, especially if they’re not present year-round. Knowing that a repair service can be scheduled with a single phone call—even remotely—offers convenience and confidence.
Factors Specific to Traverse City Homes
The climate in Traverse City poses unique challenges for home systems and appliances. With cold, snowy winters and warm, humid summers, heating and cooling systems undergo significant seasonal stress. Water heaters and plumbing lines also endure extreme temperature fluctuations, increasing the potential for wear-related failures.
Given these environmental pressures, a breakdown is not uncommon, especially in older homes or vacation properties that may go unoccupied during winter months. When considering do you need a home warranty in Traverse City, it’s wise to factor in local climate impacts and how they affect mechanical longevity.
The area also has a mix of historic homes and modern builds. In newer construction, many systems are still covered under manufacturer warranties or builder guarantees. In these situations, a home warranty may offer redundant coverage. But for homes that are more than five to ten years old, the chance of covered repairs increases, and a home warranty becomes more practical.
Cost Considerations and Coverage Limits
A standard home warranty plan usually costs between $400 and $700 per year, depending on the provider, level of coverage, and optional add-ons. Homeowners must also pay service fees for each claim. There may be caps on how much the warranty provider will pay for a repair or replacement—commonly $2,000 to $3,000 per covered item per year.
When evaluating do you need a home warranty, homeowners should weigh the annual cost of the plan plus potential service fees against the likelihood of needing repairs. If your systems are newer or recently serviced, you might find it more cost-effective to self-insure—that is, setting aside savings for future repairs rather than paying a third-party provider.
On the other hand, if you live in a home with older systems or appliances that could fail at any time, a warranty may prevent an unexpected $3,000 HVAC replacement from becoming a financial burden.
Limitations and What’s Not Covered
Home warranties are not without their downsides. Many homeowners are disappointed to find that certain failures aren’t covered because they’re deemed pre-existing, caused by improper installation, or fall under maintenance neglect. For example, if your dishwasher leaks due to a clogged filter or mold buildup, the claim might be denied. Reading the fine print is essential.
In some cases, homeowners must also use the warranty provider’s network of service contractors, which can be frustrating if you prefer working with your trusted local technician. Service wait times may also vary, particularly during peak seasons when heating or cooling systems are in high demand.
So when asking do you need a home warranty, consider how much control you want over who performs work in your home, and how patient you’re willing to be with a third-party claims process.
Should You Get a Home Warranty?
For many Traverse City residents, a home warranty provides peace of mind—especially in homes with aging systems, multiple mechanical components, or limited access to emergency repair services. But for others, particularly those in newly built homes or those with reliable, well-maintained systems, a home warranty may not offer substantial value.
Homeowners who are handy, budget-conscious, or who prefer working with specific contractors may find that self-insuring for future repairs better suits their lifestyle. Others, especially those new to homeownership or managing a vacation rental from afar, may appreciate the predictability and ease of use that a warranty provides.
There’s no universal answer to the question do you need a home warranty, but making an informed decision comes down to understanding your home’s age, condition, and how comfortable you are managing the unexpected.
Talk to a Local Expert About Home Warranty Options
The best way to decide whether a home warranty fits your specific needs is to consult with a local real estate professional who understands Traverse City homes, climate, and buyer expectations. A knowledgeable agent can help assess your home’s risk factors, evaluate the pros and cons of various warranty providers, and determine whether a home warranty will provide genuine value or unnecessary expense.
Contact Molly Buttleman today to get expert advice on protecting your property and navigating smart homeownership in northern Michigan. With deep market knowledge and a commitment to client care, Molly helps Traverse City homeowners make the right decisions—whether buying, selling, or asking: do you need a home warranty?
