Your East Cobb Realtor®

As it gets harder to sell homes in today’s market, many sellers and Real Estate Agents are turning to Home Warranties-using them as an added value for potential buyers.  These plans give buyers some peace of mind, knowing they’ll be covered for any unexpected repairs to their new home.  Plus, they help protect Realtors against claims from buyers wanting reimbursement for property defects that arise after closing.

A home is the single largest investment that most people will ever make, and the last thing a new homeowner wants to learn is that they are facing an expensive repair.  And while an inspection may find many problems that could be covered b y a home warranty, it cannot account for latent issues that are beyond an inspector’s scope or occur down the road after the sale is complete.  To help prevent post-closing glitches, more sellers are offering to include a home warranty in the sale of their homes to allow buyers to purchase with more confidence.  In fact, real estate professionals are now purchasing warranties as a gift for buyers and sellers, while also helping protect themselves from future litigation.

To help reduce your risk, you should recommend that your clients purchase a home warranty for their property and provide them a list of reputable companies to choose from.  Encourage them to resarch the copanies thoroughly and ask the right questions, including:

• Which components of thehome will be covered by the warranty, which component are not coverd, and what are the specific exclusions and limitations?  Is additional coverage available for items like swimming pools or refrigerators?
• How mch is the annual cost of the home warranty plan?
• How much is the charge for a trade service call?
• What are the total dollar limits on the warranty, and what are the limits for individual items?
• How long has the company been in business, and is it licensed?
• Is the company’s consumer service department available for requests 24 hours a day, 365 days a year?
• Can the warranty be renewed?
• Will a licensed contractor be used to make the repair, and what is the turnaround time?
• What percentage of claims is paid?
• What is the company’s customer retention ratio?

Most importantly you should stress the importance of reviewing a policy carfully before accepting it, paying particular attention to what is and isn’t covered.  Often, thee contrac come with loopholes that require proper maintenance or upgrades to current building codes before repairs will be covered.  If your clients decline this valuable coverage, you should document this fact in writing and retain the waiver in your transaction file.

When homeowners require more than a handshake after making the most significant investment of their lives, give them a home warranty and arm them with the security they need to help fight problems and various covered systems and appliances.

If you’re thinking about buying a home or selling your current one, Call Me Today:  678-763-6025 or Email Me: jodismith@kw.com!  Let’s Get Started!!!