How a home warranty speaks to millennial Buyers’ needs
In general, your millennial Buyers look for three things in a home: affordability, reliability, and move-in readiness. As the largest group of first-time Buyers, millennials appreciate real estate pros who can guide them through the uncertainties of home ownership. Let’s look at some ways you can leverage a home warranty from 2-10 Home Buyers Warranty (2-10 HBW) to speak to the needs of millennial Buyers.
Home warranties can make home ownership more affordable
The median price for a home in the United States is currently $320,000. And on average, millennials carry nearly $30,000 in student loan debt. These realities often put millennial Buyers at a disadvantage as they try to enter home ownership. And the costs of home ownership don’t stop after closing. Recommending a home warranty can help them plan for unexpected expenses as they settle into home ownership.
Many first-time Buyers don’t realize how much it can cost to maintain their new home. When major systems or appliances break down, the price tag to address those unexpected breakdowns out of pocket can be shocking. For example, the average cost to replace a full HVAC system without a home warranty is around $6,400 and can often be even more than that.
A home warranty from 2-10 HBW can reduce systems and appliances repair and replacement costs when they break down from normal wear and tear. Rather than paying the full cost to repair or replace when a breakdown occurs, the homeowner pays a small Service Fee to have a qualified Service Contractor diagnose the issue. If the breakdown is eligible based on the terms of the Service Agreement, the home warranty will cover the cost to repair or replace the item, up to the clearly stated dollar limits.
A home warranty can add peace of mind
No homeowner wants to have a breakdown happen right after paying for the down payment and other closing costs. But breakdowns are difficult to predict. Even if a Seller maintains their home well, major systems and appliances will still break down one day. A home warranty can give millennial first-time Buyers a plan of action if something goes wrong with their new home.
A home warranty takes the guesswork out of systems and appliances breakdowns. Regardless of how old the home’s systems or appliances are, a 2-10 HBW home warranty can cover them if they are in good working order at closing. It also connects Buyers with 2-10 HBW’s network of qualified, approved Service Contractors. Instead of wondering whom to call, Buyers simply file a claim with 2-10 HBW, online or by phone, and we set everything up.
Sellers offer home warranties more than any other incentive (even cash considerations) to Buyers, according to the National Association of Realtors (NAR). A home warranty offers potential Buyers peace of mind, which many value even more than straight cash. If something breaks down while the house is on the market or after closing, a home warranty can cover it. That means that the Seller is less likely to experience closing delays. It also means that Buyers won’t have an unwanted project on their hands after they move in.
It can make the home more move-in ready
Most millennial first-time Buyers want move-in-ready homes. The costs to close on a home are often too high for them to take on renovation projects. A home warranty can make the home more move-in ready by protecting them against common breakdowns. And household breakdowns are much more common than many homeowners assume.
- 7 in 10 homes experience a system or appliance breakdown in any given year.
- 1 in 3 homes requires an HVAC repair in any given year.
- 1 in 5 brand-new appliances break down within the first 4 years after purchase.
Homeowners are 7 times more likely to use a home warranty than homeowners insurance. It’s no surprise, given how often systems and appliances break down in a year. Even with Sellers’ best efforts at maintenance, Buyers will likely face these breakdowns.
A home warranty is a worthwhile investment for first-time home buyers. It reduces the high costs of home ownership. It gives Buyers peace of mind by protecting against breakdowns. And it speaks to desire of millennial first-time Buyers for move-in-ready homes. A real estate professional who can provide that much value can better protect their transactions, speed up their sales process, and improve the experience of home ownership.
2-10 HBW offers comprehensive systems and appliances home warranties to help protect your clients from unexpected repair and replacement costs. Contact us to learn more.