Home Warranties really make sense

I agree they help protect everyone and solve issues after closing that can really eat up your tima as a realtor.

Neal

 

Well put. I like the idea of the home warranty especially on an older home and 1st time young homebuyers. Costly repairs can really ruin a budget of our clients and what better way than to get a home warranty for their investment.

Neal...  I am not a realtor, but I would tend to agree. For the small price, it could save you tons. And even home inspections are important.  But yes, I agree, that home warranties are good... just like those that builders offer on new construction loans. 

I offer a home warranty on every one of my listings...I am astonished at the agents that don't put it in the contract!  It is a value-add for my clients and it leaves a lasting impression with the buyers!  One of my listings (with a warranty, of course!) sold last Spring.  I ran into the buyers (who were not my client's) a couple of months later.  They told me how the hot water heater had gone out just 2 days after closing and what a great thing the warranty was...I have already had two conversations with them about additional business, including putting their house on the market this Spring and finding them a larger home in the same area!  The $425 I spent on the warranty will likely land me at least 3 transactions!  HUGE!

Be of service! The rewards will come!

 I feel like a car salesman offering an after sale.  It might be useful for buyers but I have yet to meet anyone who wants it.

I agree they help protect everyone and solve issues after closing THE BEST THING OUT THERE

Yes this is so true. Home warranty's pay off for your seller if problems arise while listed. But they also pay off for your buyers. I always try and get my buyers to purchase one if it is not offered.  When they have to make repairs they will thank you....

Neal, you have totally read my mind today. Do you have ESPN?? I called a company called System Protect that was from a card sent out by US Bank to a handyman I employ. (he called to give me the number) I have asked for their information to insure my own home. I do believe after working in real estate over time that really it is all about the contractors they hire to do the job as to whether customers are satisfied with the home warranty service. If that service is bad it hurts everyone. I was going to write a post on this but you got to it ahead of me. I need to get to work on my weekly newsletter tonight anyway. O well......

I have sold a lot of homes in my years.   Back in the 1980s and early 1990s, you might be able to get a home warranty paid for by the seller and you may not.  Then, when I broke with the mega broker and was able to make my own decisions, I put a one year home warranty on every single home I sold.  I write it in the contract for the seller to pay, but if they don't, my buyer gets one anyway. 

I consider a home warranty on a home to be an important part of risk reduction.  This is one of the questions on my E&O Insurance questionnaire.  It reduces my E&O rates.

Finally, it's a great advertising, promotional and public relations investment.

 

That's a widespread practice here for seller to offer or agent to buy...good incentive and worth it to save them money and to remember you by whe something needs repair :)

Neal- In my area  LA County South Bay Beach Cities in CA seller pays for a home warranty 98% of the time.. it's not even questioned.. and if the seller doesn't pay then I will put one on.. We've been doing that  for over 20 years.  I know this is not standard in all areas.

Hi Neal,
In our market, it is an accepted fact the Seller will furnish a home warranty.  If they balk (which is seldom, I pay for it).  What a deal it is!

Neal,  I've always used a home warranty and include it in my marketing plans.  It's a great tool and I feel that every home should have one, besides it can save me a lot of headaches also.

Neal - every home I have listed has a home warranty with AHS - for the most part they can save money - however - always have your clients read the exclusions - for example heat pumps are excluded - and if an oil furnace goes out - they will replace it with an oil furnace - and be certain that your seller knows that it will only pay a partial payment on some replacements - I have learned these the hard way

Neal, I can't remember the last time I sold a house without a warranty. But my sellers never offer them. In my market we know the buyers are going to ask so by not offering it it is something we can "give up" during the negotiations. My sellers know at time of listing that they will have to pay for one.

As for other incentives, I don't get them at all. As a general rule I would much rather just reduce the listing price according to achieve better positioning than offer closing costs assistance, trips or whatever. I figure of the buyer needs help or wants a trip then they will ask for it. A lower list price gets more showings and that really is the name of the game.

I offer home warranties to all of my buyers and sellers as my gift to them. I have so far only had one listing refuse it because he didn't want a warranty on his house (even though I was going to pay for it). The buyers or sellers may never use the warranty but the peace of mind that it is there sure is great.