Home buyers appreciate real estate agents who can help guide them through the confusing aspects of the home buying process. They also value agents who can advise them on ways to cut costs and protect their homes. Today, we’re going to discuss how a Home Warranty Service agreement can help save your clients money by protecting them from burdensome costs related to everything from HVAC breakdowns to plumbing issues.
Why Get a Home Warranty?
Like other kinds of warranties, a home warranty is designed to protect homeowners against unexpected and costly repair bills. This can be a good option for those who don’t have emergency funds set aside or who want to reserve their emergency funds for other potential issues unrelated to their homes.
Home warranties are also ideal for people who aren’t particularly handy or who don’t have time to track down reputable contractors when problems pop up unexpectedly. They also make sense for people who own expensive modern appliances.
Avoiding Unexpected Costs
These days, we are presented with the opportunity to spend a little extra on warranty protection for just about every type of purchase. While it may be fine to forgo a warranty for less costly, replaceable items, such as smartphones, tablets and printers, your clients should have a different perspective when it comes to protecting their largest investment.
Most real estate agents and home buyers are surprised to learn that 67% of homes experience a systems and appliances failure within the first year of home ownership. A home warranty service agreement reduces the overall cost of owning a home by shielding them against unexpected system and appliance breakdowns. Whether it’s a furnace, plumbing, water heater, wiring, disposal or HVAC; a home warranty service agreement will help pay for repairs and replacements. Many plans also allow homeowners to purchase additional coverage to protect against roof damage, septic problems and other issues that can take a huge chunk out of a homeowner’s bank account.
What About Homeowners Insurance?
If your clients aren’t sure why they might need warranty protection in addition to homeowners insurance, this is a great opportunity to differentiate yourself from other agents who operate with a limited knowledge base. For example, many homeowners mistakenly believe that homeowners insurance will shield them from burdensome home repair costs. Unfortunately, insurance only offers protection for a home and the possessions inside the home if they are damaged under very specific circumstances, including weather, fire and theft. In contrast, a home warranty service agreement typically covers failures to a home’s eligible systems and appliances as a result of regular and proper use. Being able to educate your clients on how these types of coverage can complement each other brings value to your relationship.