Why Smart Movers Use Home Warranties

The process of purchasing and moving into a new home can be an overwhelming task. Home buyers often purchase and move into homes without knowing the underlying risks that accompany the property they buy. In a red-hot real estate market, supply-chain issues and shortages can amplify these risks and make it particularly expensive for homeowners to solve them. For these reasons and many more, smart movers use home warranties to guarantee themselves a smooth transition to a new home with minimal financial setbacks.

State of the Real Estate Market

Since the inception of the pandemic back in 2020, the real estate market has been red-hot. Historically low interest rates coupled with government stimulus and unemployment benefits have contributed to frantic home-buying from both institutions and individual buyers.

As a result, as we transition into 2022, there is currently a housing shortage. Supply-chain issues and regulatory practices have resulted in increasing labor shortages as builders struggle to meet the demand for housing.

According to US News & Report, home buyers can expect much of the same in 2022. Some of these key trends expected to emerge early in the new year include:

  • Low housing supply and rising home prices
  • Continued growth in the rental market
  • Increasing interest rates coupled with wage growth

Increasing macroeconomic uncertainty is a contributing factor to these key trends forming. As builders struggle to find the resources for new housing, labor issues become further amplified.

The Labor Issue

Throughout the recent housing surge, labor shortages have become an increasingly strenuous issue as builders and contractors struggle to meet demand. This labor shortage has caused a variety of different problems for home buyers.

One major issue is that homes are being purchased and approved without a proper home inspection. According to the real estate brokerage Redfin, home inspection was waived in 13.2% of successful home purchases in late 2020, up from 7.2% waived in late 2019.

It’s normally recommended for home buyers to have an inspection done on their home before finalizing a purchase. However, Nick Gromicko, founder of the International Association of Certified Home Inspectors explains how in the current market, the inspection rider “makes your offer worth less in many sellers’ eyes.” For home buyers set on a particular region or home, this necessary inspection could be seen as an obstacle.

Additionally, moving to a new area may limit the choices new home buyers have for reputable repair services. This obstacle has increased due to recent labor shortages, putting new home buyers at a relative disadvantage to settled residents or local home buyers.

Another common issue home buyers encounter is when things break down after purchasing a home. Frequently, appliances are found to be defunct post-purchase and cost a considerable amount to replace or repair. Home advisor details the average cost to replace common household appliances:

Appliance Material Price Range Installation Price Range
Refrigerators $425 – $10,600 $150 – $250
Dishwashers $330 – $1,900 $200 – $500
Stove & Range $410 – $7,500 $100 – $500
Microwaves $50 – $2,300 $115 – $500
Range Hood $45 – $2,450 $300 – $600


Not all household appliances are created equal. According to the US Appliance Repair Affordability, Reliability and Seasonality Report, refrigerators, ovens, dishwashers and washing machines are vulnerable to seasonality and tend to need repairs more frequently.

Typically, the seller is responsible for disclosing home defects. However, after escrow is closed, the home buyer may be limited in what they can recover for defects found.

Relocation Insurance Group Now Offers Home Warranties

We know that our clients have nice things that are worth protecting. That’s why they hire moving companies and buy moving insurance. So, it stands to reason that these same customers would value the peace of mind afforded by a home warranty that protects against the unexpected costs when of broken appliances, electronics and other home systems.

That’s why RIG has teamed up with Armadillo Home Warranty. A new kind of home warranty company, Armadillo provides transparent, fast service to home warranty customers, without all the fine print and delays found with many competitors.

Learn more and get a home warranty quote here>