Put a Warranty on It: A Win-Win to Protect and Market Your Listings

Brooke Hoyt

By Brooke Hoyt

Need to give your listings a boost? When you list a home, go ahead and help your client purchase a home warranty for the property. With that single flick of your wand (i.e., phone call to your rep), you gain protection and increase marketability.

Gain Protection for the Seller
While the house is listed, something is bound to go wrong (Murphy’s Law anyone?). A home warranty can make that something a little less costly. It can save your client from the headache of chasing down a repairman (which frees up their energy for the constant tidying that comes with a home on the market, of course). Having that bit of extra help will make your client oh so happy, and they’ll have you to thank for the genius move.

Increase Marketability and Buyer Confidence
You need an edge in a competitive market. A home warranty can help you there. Research suggests that properties with a home warranty sell quicker and for more money than homes without one. Why? Buying a home is a big deal. Given the scope of the decision at hand, many potential buyers are nervous before even stepping foot on the property. Knowing that a home warranty is already in place can help them feel more confident about the home and more inclined to purchase. The fact that they don’t have to invest the extra time and expense putting the plan in place for coverage aft er the sale is a big plus.

Minimize Liability
As an agent, you’re likely well aware of the post-transaction liability that exists. The investment in a home warranty can keep pay off there too. Instead of chasing you down for basic wear and tear concerns, the buyer will be inclined to call the home warranty company. Of course, do keep in mind, what a home warranty does and does not cover still applies!

But What About the Expense?
As an agent representing a seller, you may be concerned about this additional cost. Keep in mind, though, the average warranty order – at least ours – is $500. This is a minimal amount when viewed in the context of a home sale transaction. This amount can easily be factored into the sale price you set for the home, as needed.

How Does Transferring Coverage Work?
Let’s play this scenario out. You put a home warranty on your listing. The house sells (smoothly and quickly, of course!). What does it look like to transfer coverage to the new buyer? The specifics vary with each company. Be sure to do a little research and ask questions like:

 

  • What is the process to transfer a policy to a new buyer? Find out what information they will need from you and when.
  • Are there any fees to transfer the policy? Look for a company with no sneaky transfer fees, if possible.
  • What happens if the client doesn’t use the warranty while the house is on the market? It’s worth seeking out a company that will restart coverage if the policy hasn’t yet been used. This is a rare feature, and it gives the buyer a full year of coverage – a huge added value.

 

A Win-Win for All Parties
So, there you have it. Putting a home warranty on your listings is quite a win-win for all parties. Our recommendation – don’t waste any time. Put a warranty on it!


Brooke Hoyt is the vice president of operations at Platinum Home Warranty, a locally owned and operated Arizona company. Platinum employs their own service technicians for most trades, offering home warranties and a full retail division to meet the needs of homeowners in metropolitan Phoenix. To learn more about how Platinum can help you and your clients, head to www.platinumhw.com