Are Home Warranty Service Agreements Worth the Cost to Your Buyers?
Breakdowns to systems and appliances can cost homeowners 1-3% of their home’s value each year. It’s a cost that many home buyers are unaware of and one that they’re not always prepared for.
But, as a real estate agent, you’re in a great position to help buyers weather these unexpected repair and replacement costs with greater ease. A Home Warranty Service Agreement, sometimes referred to as a home buyers warranty or a systems and appliances Service Agreement, is one tool that you can suggest to your clients to help them cope financially. Keep reading to learn more about how these products can help your clients save money when their home’s systems and appliances break down.
Without a Home Warranty Service Agreement Repairs to Systems and Appliances Can Cost Thousands
Homeowners can’t avoid systems and appliance breakdowns… they’re bound to happen eventually: each year there’s a 68% chance that a major home system or appliance will fail in a home.
Service Agreements can protect your clients from costs associated with repairing and replacing the most important parts of their homes, like:
- Refrigerator: The average replacement cost for a refrigerator can vary widely from $900 to over $8,000 depending on the model and its features.
- Dishwasher: Can your clients afford a $1,440 dishwasher replacement?
- Central Air Conditioner: According to Home Advisor, most homeowners spend between $145 to $492 on repairs to their central A/C units. At the higher end, the cost tops out at $905.
A Home Warranty Service Agreements Even Cover Old Appliances
It’s a common question: Does it matter that my home systems and appliances are very old?
Thankfully, no, it doesn’t matter. As long as your client’s covered systems and appliances are operating properly when the Service Agreement is purchased, they are eligible for repair or replacement when and if they break down. This helps saves your clients money when they don’t need to purchase brand new appliances to trigger coverage.
Because terms and conditions are different between warranty providers, encourage your clients to read through their coverage documents very carefully. 2-10 Home Buyers Warranty® (2-10 HBW® Home Warranty Service Agreement does cover old appliances, but not every company does.
Home Warranty Service Agreements Pace a Large Emphasis on Maintenance and Education
Regular maintenance is a hugely important aspect of home ownership, but some homeowners just don’t know what they need to do in order to keep their home running smoothly.
Knowledge is power, and Home Warranty Service Agreements compel owners to maintain the systems and appliances in their homes, therefore saving them money in the long run. Encourage homeowners to read through all of the documents associated with their Home Warranty Service Agreement, and you can even suggest that they create a home maintenance schedule.
Learn more about how a Home Warranty can save homeowners from unpleasant financial surprises and add value to your business.