As a professional realtor, when your clients use your services in the purchase or sale of a home, they are looking for guidance and minimized risk. They are looking to you, to steer them in the most financially beneficial direction. Your recommendations based on long-term value are held in high regard. At Choice Home Warranty, we recognize the importance of your professional instruction. The services offered through home warranty coverage are a major contribution to that end.
Understanding the benefits of a home warranty provides you with the opportunity to better protect your clients and offer them an added value in their home purchase. With a Choice Home Warranty, potential home buyers will feel more at ease investing in a home and more likely to make a purchase.
There are a great deal of benefits to realtors in working with Choice Home Warranty, but you don’t have to take our word for it. Below are a few important facts you should know about home warranties:
- 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
How Is A Home Warranty Different from Homeowners Insurance?
The first question most have, if not familiar, is “what is the difference between homeowner’s insurance and a home warranty?”. The simple answer is, a homeowner’s insurance policy seeks to protect your investment from dangers that are possible, such as hurricanes, fire or natural disasters. Your home warranty is to insulate you from wear and tear (coverage extent based on contract), common in the life of all home appliances and various systems operating in and around your home. As with all mechanical or electrical items, they are susceptible to damage and/or accident.
Benefits to Buyers Agent
As discussed, 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, at 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 is:
- 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?
How a home warranty plan aids the buyer, can be illustrated in many 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?
How a home warranty plan aids the seller, can also be illustrated in many 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?
There are no restrictions to cancelling a home warranty policy. 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, being protected in most the expensive purchase most people will make in their lifetime.
Th data suggests that it costs roughly $3,000 to maintain a $300,000 home, outside of requisite expenses. 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.