A home warranty can help a new homeowner save thousands of dollars every year. At the same time, real estate agents and credit unions also win when they offer these policies to their clients. Following are several compelling reasons why working with a home warranty company such as Capital Home and Auto is a good idea.
Standing Out from the Competition
Thanks to inflation and a steep rise in interest rates, the number of people buying a home is steadily decreasing. In fact, more than 60,000 realtors have left the sector in the last six months alone. Unfortunately, it doesn’t appear the real estate housing market will recover anytime soon. Inflation continues to plague the economy. Additionally, the FED will likely raise interest rates a couple more times before the end of the year.
To remain successful long-term, realtors will need to look for ways to stand out from the competition. Offering extra services can attract new clients and build brand loyalty that will cause happy customers to refer others to your firm. A free one-year home warranty for homebuyers will enable you to attract attention, build brand awareness, and stand out from the competition.
Building Trust
A home warranty, which should not be confused with a home insurance policy, covers large appliances such as stoves, refrigerators, washing machines, and dryers. A policy can also cover home systems such as an HVAC system. Offering such a policy reassures buyers who may be concerned about the condition of the home’s systems and appliances. This builds trust as buyers know that a warranty company would only cover a home if the systems and appliances are in good condition. It can be a particularly ideal selling point for older homes with used appliances and systems. However, don’t discount the appeal of this policy even if you’re selling a brand new or relatively new home.
Speeding up the Sales Process
After a home is put up for sale, it can take an average of 45 days to find a buyer. However, it could take much longer than this for homes in areas with low demand. Offering a home warranty makes a home far more appealing than it would be otherwise. This speeds up the buying process. What’s more, it adds value to the home, which can enable it to sell at a better price than it would otherwise. Everyone wins with a home warranty. Sellers earn more money for their homes. Realtors earning a percentage-based commission increase their earnings. Credit unions offering loans increase the size of the loan and thus their long-term profits. At the same time, sellers also save money on the cost of replacing home systems and/or appliances.
Protecting Yourself from Lawsuits and Reputational Harm
In some instances, a homebuyer can take legal action against a realtor if the buyer feels the realtor didn’t disclose problems with home systems and/or appliances before the sale of the home. Naturally, the overwhelming majority of realtors do their best to provide buyers with full information on the home’s pre-existing conditions and weak points. However, it’s easy to either make an unintentional mistake or fail to provide paperwork proving that you informed a buyer about a problem with the home’s appliances, electrical work, HVAC system, or plumbing.
A home warranty protects you from lawsuits. It also protects you from reputational damage from unhappy homeowners who may take their grievances to Yelp and other business review platforms. Over 80% of consumers trust online reviews as much as a personal recommendation. Even one negative review from an unhappy homebuyer can make it hard to attract new clients. On the other hand, with a home warranty, home buyers have an easy recourse if something doesn’t work as expected, or stops working shortly after the home sale. They simply need to call the company that provided the warranty. The company will send someone out to repair or even replace the faulty system or appliances free of charge.
Tailored Policy Options to Meet Your Needs
Capital Home and Auto offers tailored home warranty policy options to meet your exact needs. Perhaps you’re selling an older home with no appliances and pre-existing plumbing problems. In such an instance, we can offer a home warranty policy that specifically covers the plumbing. Do you need a systems policy that covers electrical, plumbing, and HVAC? We can provide a policy of this nature as well. We also offer comprehensive policies that cover all the home’s appliances and systems. You don’t have to take out a single policy to cover all the homes you sell. We can offer individual coverage for each home to suit your needs and budget. Capital Home and Auto has a reputation for providing stellar service to meet the needs of real estate agents, credit unions, and homeowners. We have been in business for more than twenty years. We have the experience and expertise you need to maximize the value of a home and get fast, efficient repairs whenever needed.
A home warranty is a valuable policy that can save a homeowner thousands of dollars per year. While new homeowners can buy this policy for themselves, realtors and credit unions that offer a free one-year policy to home buyers are doing themselves and their clients a huge favor. Not many people realize how much appliance and home system repairs cost; providing a free guarantee that appliances and systems are in good working order or will be repaired/replaced if something goes wrong provides buyers with the peace of mind they need to close the deal. Credit unions and realtors also win, as home warranties provide the top-tier customer care and service that will help you stand out in your field. Call us today to find out about our policy options or to start the process of obtaining a home warranty for one or more homes.
Sources
Home Protection – Capital Home and Auto
Why Should Agents Partner With A Home Warranty Company? – 2-10 Home Buyers Warranty
What Is A Home Warranty? | Rocket Mortgage
Realtors leaving after signing up when home sales were hot (axios.com)
U.S. home sales 2011-2021 with forecast until 2023 | Statista
Home Defects Discovered After the Sale – FindLaw
Average Time to Sell a Home From Start to Finish (massrealestatenews.com)
