9 of 10 California home buyers get free one-year warranties as part of the deal, but beware, often there are strings attached

As a real estate agent, I often buy home warranties for my buyers when they close escrow. They are a great way to get little nit-picky items handled without involving the seller or spending more than the $50 service fee.

But as the Chronicle points out today, they are not fix-all policies and they should be considered carefully.

"...for the relatively small sum of about $275, the average price of a basic warranty, sellers tack on a little extra incentive to buy their homes. Buyers, who may be feeling a bit anxious about slipping into the harness of a mortgage that stretches their monthly budget to the breaking point, take comfort in the thought that, should their heating system shut down in the middle of winter, they won't have to pay for it. Real estate agencies like them, too: The warranties reduce the possibility of litigation, which is why they were initially created."

"Home buyers shopping for a warranty can consult the CDI's Web site, www.insurance.ca.gov, which lists the track record of the 11 major companies selling home warranties in the state."