Categories: Home Owners Insurance

Should You Include A Warranty Plan In A Home Offer?

When you are facilitating the purchase of a home, your client will have a number of questions. Most of them will have to do with the “real” value of the house, any conditions on the property itself, and so on. But some questions have more to do with external services.

One such service that comes up over and over again is the concept of the home warranty. A home warranty covers basic fixes for a homeowner. This can be extremely helpful for when urgent home care is needed. However, many individuals are wary of warranties that promise far more than they offer.

Is it in the best interests of your client to include a warranty plan in their offer? Here are some factors that will help you decide.

What is covered?

Many home repairs can be done by the client themselves, and that is the surest way to save money. It is therefore important that what is covered in a home warranty is mostly what requires professional workmanship.

Most home warranties cover fixes for kitchen appliances, plumbing issues, water heaters, heating and electrical system components, and ceiling and exhaust fans. When it comes to plumbing and electrical issues in particular, it is crucial that the client chooses to hire a professional. Any amateur repairs can lead to real dangers.

A home warranty is particularly useful for older homes, which may have overly-complicated electrical and plumbing systems which will eventually need an overhaul. In any case, what is covered in a home warranty cannot simply be done by the homeowner and is therefore worth considering.

Do they come through?

The big question when it comes to any type of warranty is whether the company comes through for the client. Many warranty providers include loopholes in the contract that makes it difficult to claim for many legitimate issues. The last thing you want is for your client to be fighting with the warranty provider when they are in urgent need of repairs.

It is crucial that you take a look at home warranty reviews before recommending a company. See what the experts as well as past customers say about their service. This is generally a more surefire way of getting the right information than digging through the contract for clues.

Are you already covered?

Before recommending a home warranty, check if the property is already covered. Home appliances are generally covered for a period of time by their manufacturers. Most states also require builders to warranty the structural elements for ten years. So, if the home is new, paying for a warranty may not be necessary.

You should do this research for your client to make sure you don’t accidentally convince them to pay for something they don’t need. Also, find out exactly what any current warranty covers and how your client can claim. A warranty is useless if the client forgets it exists or doesn’t know how to take advantage of it.

A home warranty is not for everyone, but it can save homeowners a lot of money and stress in the long run. Find out all the information you need to know before recommending any particular warranty to your clients.

Jamie Richardson

Recent Posts

Property Management Trends That Will Shape 2022

Property management currently operates in a very aggressive and constantly changing realm. However, some key…

13 hours ago

Everyday Tools and Software Realtors Need to Use

Real estate professionals lead busy lives, so finding better and more efficient ways to do…

2 days ago

6 Questions to Ask Yourself Before Switching from Renting to Owning a Home

Buying a home has long been considered a quintessential part of the American dream. Owning…

2 days ago

Five Top Agents in Rocky Mount, North Carolina

A roundup of some of the top real estate professionals in the Rocky Mount, North…

3 days ago

What to Know About Canada’s Top 20 Real Estate Agencies

Making the decision to join a real estate agency or purchase a home is a…

3 days ago

Buyers are walking away from new homes due to rising interest rates

Interest rates have been rising so fast that many buyers who signed contracts to purchase…

3 days ago