Fall in Love with a Home Warranty

Toy house and red hearts

Home warranties can be an invaluable asset for new homeowners, protecting their budgets and providing a safety net when unexpected breakdowns happen. But the right home warranty can also protect the seller and agent facilitating the transaction—so why not share the love? Let’s take a look at how an Old Republic home warranty benefits your home sellers, homebuyers, and real estate agents.

What Are the Benefits of a Home Warranty?

A home warranty can benefit the home seller, the homebuyer, and the real estate professionals facilitating the sale. Including a home warranty with every home sale transaction is an opportunity to:

  • Increase referrals. Surveys indicate that up to 83% of new real estate clients come from referrals. Happy clients generate referrals. Those referrals may also turn into happy clients who generate even more referrals—and so it goes.

  • Protect the agent during the listing period. A home warranty can be an excellent way for the seller and the real estate agent to protect themselves against complaints and even litigation. As an agent, the last thing you need is to be hit with a lawsuit from homebuyers claiming they were misled about the state of a home’s systems and appliances.

  • Provide an incentive to homebuyers. In a competitive market, you owe it to yourself and to your client to make the listing attractive to potential buyers. A home warranty may reduce the likelihood of downward price negotiations, boosting the agent’s commission as well.

Is a Home Warranty Worth It?

Homeowners may ask, “Should I purchase a home warranty when I buy a house? Maybe I should just place the money in an emergency fund?” According to Consumer Affairs, the average cost of a home warranty plan is between $400 and $800. Typical appliance repairs cost between $100 and $240, and appliance replacements usually cost several hundred—or thousands—of dollars.

If buyers choose to place $800 in an emergency fund rather than purchase a home warranty plan, those funds may cover the cost of replacing one appliance. But what if they have more than one home system or appliance breakdown? Or what if they experience another emergency, such as an unexpected medical expense, that requires using their emergency fund—and then experience an appliance breakdown after their savings are depleted?

Purchasing the right home warranty can shield your client’s bank account from the cost of unexpected home system and appliance breakdowns. Purchasing a home warranty from a reputable company can be a wise investment in overall financial security.

Do Home Warranties Cover Everything?

While most home warranty companies want to tout their coverage, it is important to remember that all plans have products and services that are not covered. That’s why it is imperative that you only do business with a reputable home warranty company.

Old Republic Home Protection has been protecting customers and paying claims on covered home systems and appliances for nearly 50 years. Customers can reference transparent plan brochures and customize their coverage using a variety of options.

All things considered, a home warranty can be an excellent investment in the home’s value and a financial shield for sellers, buyers, and agents. Only do business with the best and share the love by including an Old Republic home warranty in your home sale transactions!

Reference to any specific brand, product, or service does not constitute endorsement by ORHP. ORHP does not receive compensation for providing third-party links.

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