Real Estate Agent Benefits of Home Warranty Coverage
With a Choice Home Warranty, breakdowns and repairs on covered systems and appliances don’t have to be a hassle. Whether you are a first-time home buyer, seller, or existing homeowner, a home warranty is an affordable way to preserve peace of mind and to protect covered items for your most valuable asset.
- The average life expectancy of nine critical appliances/home systems is 13 years, and the likelihood of failure of one of these systems in a given year is 68%. - Home Repair and Remodel, Marshall & Swift L.P., 2004
- Homes on the market with a home warranty included sell on average 50% faster than homes without. – National Home Warranty Association
- Homes with home warranties return a sales price that averages 3% higher. – Business Week Magazine
- 8 out of 10 buyers prefer to buy a home with a home warranty. – Gallup Poll
- A home system or appliance repair can range from $65 to $2,000 and replacement averages $1,085. - Home Repair and Remodel, Marshall & Swift L.P., 2004
Are Home Warranties Different from Homeowners Insurance?
A common question asked by people not familiar with the subject is “what is the difference between a home warranty and homeowner’s insurance?”. Homeowner’s insurance typically offers protection from possible hazards, such as fire, hurricanes, or other natural disasters. A home warranty protects you from certain wear and tear on covered items.* This type of damage is common during the lifetime of all mechanical systems and appliances inside and outside your home. All electrical and mechanical items are vulnerable to damages or accidents.
Benefits to Buyers Agent
A home warranty policy acts as security in the event of a costly repair. With Choice Home Warranty, you maintain your monthly home warranty plan and, when services are required, you pay a $65 Service Call Fee which does not change based on the cost of repair or replacement.* As an alternative to the high retail costs of maintaining or replacing household items, having a plan is the smart choice.
The benefits of including a home warranty plan in your sale is:
- Clients purchase with confidence and feeling of security
- Happy clients will always recommend their friends and family
- After sale is completed, any material or mechanical issues within home can be resolved without your involvement
- A key selling point for buyers experiencing anxiety
Benefits to Listing Agent
The benefits of including a home warranty plan in your client’s sale are:
- Again, clients purchase with confidence and feeling of security
- Your listings enjoy preferred status, due to decreased buyers’ liability
- Added coverage, further justifies seller’s asking price
- Allows for clean sale, with no post-sale issues related to broken appliances or faulty home systems
- Insulates against breakdowns occurring during listing period*
- Happy sellers more willing to send referrals
- Removes any possibility of financial loss to you, as listing agent
How does a Buyer Benefit?
A home warranty plan aids the buyer in many different ways:
- Decreased anxiety in home buying process
- The wide network of technicians at their disposal removes the uncertainty of having to rely on questionable means
- No risk of financial demise due to unexpected repair costs and bills*
- Time savings due to immediately assigned service technicians, rather than having to search on their own
- Commitment by Choice Home Warranty to issue resolution
- Flexibility of having access to round-the-clock, 24/7 availability for any unforeseen circumstances
How does a Seller Benefit?
A home warranty plan also aids home sellers in all of the below ways:
- Ability to transfer coverage to new homeowner with no issues
- Personalized attention from dedicated representatives
- Decreased listing period, due to more attractive selling points
- Higher offers to purchase, due to additional security
- No lingering issues after sale, due to damaged or faulty appliances
- Seller has nothing to fear from any problems or breakdowns during listing period*
- Elicits more affirmed buyers, that see purchase as more manageable risk
Can I Cancel Coverage at any Time?
A home warranty policy can be cancelled at any time. In the event, you wish to cancel coverage during the first 30 days after purchase, Choice Home Warranty will offer a refund minus any fees that may have been incurred.*
The Home Warranty Verdict Is In
According to a recent Gallup Poll, 3 out of 4 homeowners surveyed agreed that having a home warranty provides buyers and sellers with “peace of mind,” knowing that any repairs or replacements would be a limited expense of a Service Call Fee. Nothing can replace the kind of comfort that comes from knowing you’re protected for the most expensive purchase most people will make in their lifetime.
The data suggests that it costs roughly $3,000 to maintain a $300,000 home. Plus, with the rapidly advancing technology involved in 21st century homes, that figure can skyrocket easily. Choice Home Warranty’s dedicated staff works with homeowners in times of need and is aware of the stress associated with home ownership. The tools and expertise at their disposal allow for a seamless transition from stress and despair, to relief, for your clients.
Facilitating enjoyable home ownership is our stock-in-trade, so we view our relationships with trusted real estate agents as a conduit for sustained growth and a strong industry. Make the right choice, with Choice Home Warranty.