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Home Warranties? Yes, No, or Maybe So?

By
Real Estate Agent with Realty One Group Cascadia

homes for sale vancouver wa

homes for sale vancouver wa

Home Warranties? Yes, No, or Maybe So?

When it comes to extended warranties, I am not a big fan. I am even a little cynical. They are usually pushed on consumers when the buy electronics. To me, they just don’t make sense. Why would I pay $120 to extend the warranty on a $200 tablet? By the time that the manufacturer’s warranty expires, the merchandise is probably obsolete.

Home warranties are a completely different animal! I highly recommend them to all of my clients. Many of my clients equate them with the ones sold on electronics and I have to work a little harder to convince them of the benefits. Fran was one such client but now she is glad that she followed my advice.

Last Friday she called me to thank me for not listening to her when she first rejected buying a 2-10 Home warranty. She went on to tell me that the Apollo water heater in here house had failed, and she used the home warranty to have it replaced. The total bill would have been about $1200 but she will only have to pay $75 plus a few hundred because a few things have to be upgraded to code. She is in her 80’s and on a very tight fixed income. As you can imagine, she was thrilled.

After we got off the phone I started to worry about the so called “things having to be upgraded to code.” I called my 2-10 to discuss the situation. Upon hearing the story, my rep told me that there are times when the warranty does not cover the entire expense and those usually involve replacing old units and being required to upgrade other pieces in the system. I was satisfied with his explanation but then he went one step further.

“Mark, let me call the plumber who is doing the work and see if I can negotiate the price. If anyone deserves a discount, it sounds like your client does.”

I was very surprised that he would make such an offer and I was hopeful that he could save Fran a few bucks.

On Monday I answered the phone to hear a very excited Fran on the other end. She told me that the plumber had replaced the water heater that morning and he told her that I had called them on her behalf and she wasn’t required to pay any additional money for the job.

Needless to say, Fran is now a client for life!

Posted by

Mark Hall

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Comments (30)

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I think a home warranty is a great things for buyers and sellers to consider.  What is a 2-10?  I hadn't heard of that.

Dec 13, 2012 12:19 PM
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Absolutly yes! The company I use sends me email when they do repairs on my clients homes and there are a lot. HVAC mostly.

Dec 13, 2012 01:16 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think they are pretty good, in general, but you have to read the fine print, and not all providers are equal. The good thing here in CA is that they are traditionally provided by the seller for 1 year at the buyers request (but generally not if an REO or short sale). I provide one to my buyers if the seller does not.

Dec 13, 2012 01:41 PM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I totally agree that a home warranty is a totally different animal.  It has made some of my buyer clients very, very happy and saved them some big money.  All for them.

Dec 13, 2012 03:18 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Home warranties are of tremendous value! In the last year, I have seen home warranty companies replace hot water heaters, pool pumps, AC units, furnaces, and on and on.  No one should be without a home warranty!

Dec 13, 2012 03:58 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Mark, a great story and a happy ending for Fran. I always recommended a home warranty to the buyer. It has paid off for a lot of buyers.

Dec 13, 2012 09:59 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

This is the best thing any buyer can receive!  Here our Seller's typically pay for this.  Such an important part of the transaction.

Dec 13, 2012 11:06 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Yes to this post..but who pays is always a fun subject....and don't ask the agent to pay either....

Dec 14, 2012 12:01 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

WOW. It is fun to wake up to find that a post has been featured. Thank you everyone!

Dec 14, 2012 12:44 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Lenn - I like the peace of mind that comes with it too. I know that my clients will be protected and shouldn't have any reasons to "re visit the disclosures."

Lorrie - The policy that I like covers the seller during the listing period if they decide to offer it as part of the sale. At closing it transfers to the buyer.

Karen - A very wise move on your part.

Dec 14, 2012 12:47 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Mark - Do they send you a postcard every time a client uses their service? I like that feature about 2-10. It tells me that the client is getting value out of it.

Ginger - It is also a good tool to help buyers purchase bank owned homes. Who knows what those homes have been through before the bank took them back?

Nan - I keep active policies on my personal residence and all of my rentals. My tenants love it when a professional responds to a problem with 24 hours of them informing me of the problem.

Dec 14, 2012 12:51 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

David - Hmmmm. We must have gotten lucky to find a reputable company in my market. Most claims are addressed and repaired within 24 hours.

Mike - I have heard rumors that they are pretty tough negotiators on the rates they pay. I have never heard of them stiffing anyone. You were smart to stop your dealings with them.

Melissa - It has been a good investment for me too!

Dec 14, 2012 12:54 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Joan - 2-10 is a warranty provider based out of Colorado. Not sure what areas they cover. Google them to see if coverage is available in your area.

Joel - HVAC and water hears seem to need the most help here in Vancouver Wa.

Jeff - A agree. Not all providers are created equal.

 

Dec 14, 2012 01:05 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Gary - A home warranty can be the difference between a happy buyer and a not so happy buyer.

Sharon - Pool pumps? That is a new one for me.

Michael - I agree. No one wants to have to deal with repairs bills in the first year of owning their new home.

Dec 14, 2012 01:07 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Paula - It is fairly common for us to negotiate for the seller to pay for a home warranty too.

Richie - That hasn't been much a problem here. It is all part of bringing a deal together.

Dec 14, 2012 01:10 AM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

 

Mark:

When I take a listing, I usually provide a one year home warranty for the buyer of the property.  It saves on calls in the middle of the night and angry buyers.

Dec 14, 2012 03:09 AM
Nancy Frimann
Eagle Ridge Realty/Signature Homes & Estates - Gilroy, CA

I always get a home warranty.  It has proced time and again to be the best investment a buyer can have.  As a matter of fact, my E & O carrier asks me every year "how many homes were sold with a home warranty?"

Dec 14, 2012 04:08 AM
Mark Hall
Realty One Group Cascadia - Vancouver, WA
Homes for Sale Vancouver Washington

Evelyn - That is a grat idea.

Nancy - Our E&O carrier does the same thing. I think they may even base out premiums on the answer!

David - Great story. I am sure that you are now their agent for life!

Dec 14, 2012 08:14 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Sounds like this worked out really well for you and you gained a loyal client.

Dec 15, 2012 07:41 AM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

We always provide one or ask the seller to provide it I can't imagine not having one. Merry Christmas Mark and the best to you

Dec 17, 2012 01:06 PM