Why Every Texas Homebuyer Needs a Residential Service Contract

By Linda Welsh

Specialize in representing savvy Buyers and Sellers for residential, second home, vacation properties, lake and hill country properties, new and existing homes, land and lots. Relocation services include area, community and neighborhood expertise and helping the entire family to find the perfect home to meet their needs and wish list.

You’ve just bought your dream home in Texas. You’re excited, unpacking boxes, imagining cozy evenings, and then—bam! Your oven stops heating. Or worse, the water heater goes cold during a shower.

It’s the kind of scenario that turns the joy of homeownership into a headache overnight. Knowing what protects you from these surprises is essential if you’re a new homebuyer. There’s a simple way to shield yourself from these sudden, costly repairs—a residential service contract. Many people mistakenly call it a “home warranty,” but it’s much more.

What is a residential service contract? When you buy a home, especially one that isn’t brand new, you might not have the luxury of warranties for major appliances or systems. This is where a residential service contract steps in. It’s a safety net, often negotiated into your purchase agreement and covered by the seller for the first year. Think of it as a year-long assurance that you won’t be left scrambling to cover the cost when something breaks.

If your refrigerator breaks down or your HVAC system needs repairs, the service contract company sends a professional to fix or replace it. You’ll just pay a modest trip fee, typically about $75. It’s affordable protection that saves you from unexpected stress.

Why is it important? If you’re a first-time buyer, you probably don’t have spare cash for sudden, high-ticket repairs. A residential service contract can be the bridge between enjoying your home and struggling with unforeseen expenses. Knowing that someone has your back when things go wrong is priceless.

When to add extra coverage? If your new place has a pool or you live in an area prone to wear and tear (think extreme heat or hard water), consider upgrading your coverage. Sellers typically include basic plans, but paying extra for broader protection can be smart. Trust me, covering that pool equipment now can mean fewer headaches later.

What about homeowners insurance? Some buyers think homeowners insurance covers everything. But it doesn’t. Homeowners insurance protects you against external forces: fires, storms, theft, or damage from water leaks. It’s for major catastrophes, not home appliances’ day-to-day wear and tear. Understanding this difference can save you a world of confusion.

If you’re buying a condo, there’s a twist. Your monthly HOA fees often cover parts of your insurance, like the building’s exterior or roof. So, your personal insurance cost might be lower. But if you own a freestanding unit, your fees could be lower, and your insurance might be higher. It’s one of those details that’s easy to overlook but can make a big difference in your monthly budget.

Buying a home is a huge milestone, and with it comes responsibility. A residential service contract is your safety net, keeping you from the unexpected costs of appliance and system breakdowns. Whether buying your first home or your fifth, ensuring you’re covered is just intelligent.

If you’re buying a home or just starting to think about it, talk to your real estate expert about adding a residential service contract to your agreement. It’s a small step that can make a huge difference. Contact me at (512) 657-4033 or linda@lindawelshrealty.com to ensure you’re equipped with the coverage that suits your needs. The best way to enjoy your new home is with peace of mind.