Why Every Buyer Should Consider a Home Warranty: A Guide for Real Estate Agents

As a real estate agent, your goal is not only to help buyers find their dream home but to provide them with valuable insights that will ensure a smooth and stress-free transition into homeownership. One tool that can be instrumental in this process—and can even enhance your reputation as a trusted advisor—is a home warranty. Here’s why every buyer should consider a home warranty, and why you, as an agent, should be well-versed in its benefits.

1. Added Security for Unexpected Repairs

New homeowners may not always anticipate the potential costs that come with owning a home. A home warranty provides a safety net by covering repairs and replacements on major systems and appliances. This can bring peace of mind to buyers who might be stretching their budgets and are nervous about unexpected expenses.

2. Enhanced Marketability of Older Homes

Older homes come with charm and character but also with the potential for wear and tear on key systems. When a home warranty is included as part of the transaction, it can be a selling point, particularly for homes that may have aging systems or appliances. As a real estate agent, offering a home warranty as part of the closing package can make older properties more appealing to cautious buyers.

3. Increased Closing Confidence

A home warranty reduces the back-and-forth of negotiations related to repairs and condition concerns. Buyers who feel confident about their purchase are more likely to move forward with a smooth closing. The assurance of a warranty can eliminate last-minute deal-breakers, providing the buyer with confidence and you, the agent, with a more streamlined transaction.

4. Protecting Agent-Client Relationships

A home warranty can help agents protect their relationships with clients. If an appliance breaks down shortly after moving in, the buyer may feel disappointed or frustrated. However, if they have a warranty, they can get the issue resolved quickly and affordably without resentment toward the agent. By recommending a warranty, you’re not just offering them protection but also preserving your professional reputation and increasing the likelihood of future referrals.

5. Supporting Buyer Financial Stability

Budgets are often tight for buyers immediately after purchasing a home, and they may lack funds for sudden repairs. A home warranty is a valuable financial buffer that can help buyers avoid expensive repairs. This stability supports long-term homeownership success and can even help to lower the chances of financial distress shortly after closing.

Tips for Agents: Presenting the Home Warranty to Buyers

• Educate on Coverage: Explain what is and isn’t covered by a typical home warranty, so your clients have realistic expectations. Emphasize that warranties usually cover the repair or replacement of major systems and appliances.
• Discuss Options: Choice Home Warranty offers customizable plans, allowing buyers to choose coverage that fits their needs. Be prepared to discuss different options and recommend which plans that would be beneficial based on the age and condition of the home.
• Highlight Value vs. Cost: Compare the cost of a home warranty to typical repair costs. Many buyers find that the annual warranty cost is outweighed by the potential savings, especially if they encounter multiple repair needs.
• Provide Real-World Examples: Share examples from your own experience or client testimonials on how a home warranty saved them money or prevented stress. Real stories can make the benefits more relatable and tangible.

Empower Buyers with Choice Home Warranty

Home warranties are an often-overlooked yet powerful tool that can make a positive difference in your clients’ homeownership journey. By understanding and effectively communicating the benefits of a home warranty, you can build trust with clients, provide them with a sense of security, and ultimately help ensure a smoother, more satisfying buying experience. Encourage your clients to consider a home warranty as part of their real estate investment—it’s a step that can lead to happier clients, a better transaction, and potential long-term relationships. But not all warranties are the same- for award-winning service, low service call fees, and unique features such as Home Title Monitoring, make sure your buyers get a CHW policy at closing!