Home Warranties really make sense

Real Estate Agent with Brokered by eXp Realty LLC SL # 3014652

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Home Warranties really make sense

I've been selling Real Estate for over 12 years both in NY and now in FL. Most of my business has come from listing properties and I have seen some interesting things through my travels in the business. There are some really crazy incentives out there right now that sellers are offering buyers.

I have seen sellers offer a free 5 day vacation if they purchase their home and I have also seen people offer free 2 yr gym memberships. I'm not saying these aren't good incentives but you have to find a buyer that either wants a free vacation or a way to stay in shape.

I'm not saying that these are bad incentives... but I wonder if these type of incentives really make sense?

Why not offer them a home warranty plan as an incentive? It is a great tool to insure that all of your major appliances are in working order when you are selling your home. This way if anything is wrong during your inspection you might save money for expensive repair or replacement. There are a few different programs available....it just depends on which is the most compatible to your situation.

There are many different companies out there that offer all kinds of programs that fit the seller and the buyers needs. My experience has been nothing but positive with the company I want to talk about.

American Home Shield or AHS is the company I am referring to.If you are interested in finding out more then please click on the link in this article. Just for the record...there are many great companies out there and I am in no way trying to sell this particular company but I can tell you from experience that my clients were all satisfied. I did have one client actually write me a recommendation letter that happened to mention how AHS saved them over $450 in repairs or replacement while their property was listed with us. This particular program covered the sellers during the entire listing period and gave the buyer a 1 yr free warranty after closing. Iwas definitely surprised but I truly believe it can be a good insurance policy for your property during the process.

To me ...home warranties really make sense and that they could be the best incentive offered when buying a home.

Please contact Neal The Real Deal Bloom-Realtor® /Remax Hometown

 Remax Real Estate Weston Florida                                                                                        Weston Realtor(R) Neal Bloom-copyright 2007

2500 Weston Road ,Suite 103

Weston FL 33331


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Eric Olson
Sky Realty - Austin, TX
I agree they help protect everyone and solve issues after closing that can really eat up your tima as a realtor.
Jan 30, 2008 09:29 AM #1
Brian Corwell
RE/MAX Sauk Valley - Sterling, IL
Sterling, Illinois Real Estate



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.

Jan 30, 2008 09:29 AM #2
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

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. 

jeff belonger
Jan 30, 2008 09:30 AM #3
Matt Crow
Huntley Realty - Huntley, IL
www.mattcrow.com 630-728-6051

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!

Jan 30, 2008 09:30 AM #4
Renee Stengel
Houlihan Lawrence, Associate Broker - Katonah, NY
Westchester County

 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.

Jan 30, 2008 09:32 AM #5
Cory Clure
Tamarack Realty - Spokane Valley, WA
I agree they help protect everyone and solve issues after closing THE BEST THING OUT THERE
Jan 30, 2008 09:36 AM #6
Darci Gullett
RE/MAX Platinum - Fowlerville, MI
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....
Jan 30, 2008 09:38 AM #7
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes
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......
Jan 30, 2008 09:39 AM #8
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

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.


Jan 30, 2008 09:41 AM #9
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate


On most homes they are worth it and I have seen the savings.


Exactly...its good for a first time home buyer especially if they are not aware of the possible issues that they could avoid.


I find it is definitely worth looking into.


I wont put it in the contract but I do offer it. Some people already have the warranty but I will ask.


If I can tell you that it actually helps the seller even more during the listing period. But the buyer gets it all after closing if you take their buyer /seller warranty. I'm telling you that it got me out of having to tell sellers that they had to come up with hundreds of dollars.


I'm telling you-Ive experienced both good for the buyers and sellers.


I have to find the testimonial from my client...I put part of it on my profile page but not the whole thing.


I'm sorry...I just put on on a new listing today so it was on my mind.


You were always a smart cookie. Definitely can be a benefit...and the one I recommend does not collect from the seller until the closing.



Jan 30, 2008 09:54 AM #10
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI

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 :)

Jan 30, 2008 10:14 AM #11
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
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.
Jan 30, 2008 10:26 AM #12
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate


Like I said...I think it is something for both sides without being prejudice to anyone.


Thanks for stopping by! I agree. I don't really think those others are as valuable.


I didn't realize it was so common there not question it...

Jan 30, 2008 10:36 AM #13
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
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!
Jan 30, 2008 10:42 AM #14
Marc Grossman
Marc It Sold! - Longwood, FL
GRI, Greater Orlando Real Estate Broker
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.
Jan 30, 2008 11:12 AM #15
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon
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
Jan 30, 2008 02:19 PM #16
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate


Sometimes I have clients who already have their own in place so it doesn't make sense for me to buy them one but I would and have on some if they don't find it important.


It shouldn't have to save us the hassle...it is the clients hassle...we just have to make them understand it will save them heartaches...and this one is really good and has saved a few of mine some bucks.


Although it is important for them to read the exclusions...you understand I'm in FL and there aren't too many furnaces here:) They do charge additional for the washer and dyer but I always suggest add the $80 to it.

Jan 30, 2008 11:32 PM #17
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

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.

Jan 31, 2008 07:55 AM #18
Charity Lane
O'Brien Realty - Prince Frederick, MD
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.
Jan 31, 2008 09:56 AM #19
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate


Then I wouldn't get my free meal:)


Exactly...never understood those other incentives...I'm sure if you want t trip it's great but I don't see the value ir the benefit and yes...reducing the price is probably the better option...then maybe we can get it to a price that stimulates the market.


It really is an insurance policy as well as knowing you can have things repaired or replaced if there is an emergency.

Jan 31, 2008 11:29 AM #20
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