A home warranty is not an insurance policy, but rather a service contract that pays the cost of repair or replacement of covered items, such as major kitchen appliances, as well as electrical, plumbing, heating and air conditioning systems. A warranty doesn’t cover windows, doors or other structural features.
Home Warranty Company Brochures
American Home Shield Home Warranty
Fidelity National Home Warranty
Why Buy A Home Warranty?
Benefits to Seller
According to one study, homes with a home warranty sold, on average, for $2,300 more and were on the market for 11 days fewer than the average listing in the markets surveyed. It shows that the sellers are being proactive in caring for their property, which can help reduce buyer anxiety. It’s one less thing to worry about for them. And also, the opportunity to convey home protection to the buyers upon closing can offer comfort and satisfaction to the sellers.
Benefits to Listing Agent
Providing a home warranty to the sellers can give you a competitive advantage. Many home warranty companies offer the Listing Agent the opportunity to provide a home warranty to the sellers free of charge. This could be a term of approximately 6 months and may vary by the different home warranty companies. If the home is not sold during that time, then the Listing agent may be responsible for a small fee.
Presenting the opportunity of a home warranty to the sellers when meeting with them can be a great added value. Providing a home warranty can create extra confidence and trust for the seller who hires you to represent them. It is also a feature that can be advertised in your marketing. What can this mean to the listing agent? More buyers coming to see the home for sale.
Benefits to Buyer
Protection with a single point of contact. There are no guarantees that nothing will go wrong with the purchase, even when a home inspection goes well and no major issues are found. A home warranty provides the buyer with a list of protected services should anything go wrong while the home is under warranty.
It’s one less thing to worry about for them. And also, the opportunity to convey home protection to the buyers upon closing can offer comfort and satisfaction to the sellers.
