Realtor Home Warranty Programs

Home warranty for realtors is a major advantage when working with clients buying or selling a home. People are generally more willing to invest when there’s an extra guarantee, so offering a one-year grace period if anything goes wrong is often the encouragement someone needs to follow through with making the purchase. 

Real estate warranty is becoming more popular, making it more appealing for clients to work with agents who offer it — whether they are buying or selling. New homeowners have peace of mind knowing that if they encounter any problems in the first year, they can claim it against the warranty. Real estate home warranty is also attractive to homeowners thinking about selling because anything that could go wrong during an open house or the move will be protected — minimizing the potential of last-minute, unforeseen expenses.

Benefits of home warranty programs for real estate professionals

Realtors have many options when choosing a home warranty program. You may invest in a monthly or annual payment plan where your clients can claim damages in the first year after purchasing their home. Some companies even offer a seller’s home warranty for free. This option is advantageous to you as a realtor because you can include it in your commission fees at a flat rate, so the client may choose your real estate company based on this service, knowing what the overall costs are upfront. 

Here are some of the other benefits of home warranty for realtors.

The list of repair requests

Potential homebuyers will inevitably curate a list of repair requests before committing to purchase the house, especially upon receiving the inspection report.  When you have a real estate home warranty to cover these repairs, your sale will likely go through. You can arrange repairs and claims at little or no extra cost to you or the client. 

Real estate warranty protection during the listing period 

A seller’s home warranty protects you during the listing period and can help you save on repair requests.

Home warranties can help during escrow when your buyer submits a list of repair requests after getting their home inspection report. If any items on the repair list are under the home warranty, then you may be able to use the policy to help cover the costs of those repairs. Warranty real estate is a great way to protect your assets in case of the unexpected.

Home real estate warranty protection for older homes

Home warranty for realtors is most beneficial when their client is selling or buying an older home. This is especially true if it still has its original electrical and plumbing systems and old appliances. A home warranty almost always comes in handy in this instance, as older homes require a lot of maintenance — especially when undergoing a home inspection. 

Keep in mind there may be a caveat with pre-existing conditions. If there’s been an issue with the electricity for a long time, a warranty may not cover the repair cost, although you may get some stipend support from the policy. 

Realtor home warranty in a competitive market

Someone thinking about buying a home is likely already feeling a sense of risk. A realtor can minimize the risk by offering a real estate warranty to protect them from the unexpected. With one less thing to worry about, people will often choose a realtor with a home warranty included in the deal. 

Transferring real estate home warranty

It’s sometimes possible to transfer the warranty from the seller to the buyer. The plan would often be one year from the warranty implemented — usually upon putting the home on the market, but sometimes can be negotiated. This way, the seller doesn’t have to pay for the repairs before they move, and the buyer can make the arrangements at minimal or no cost for the repairs and have the house redone how they like. 

Providing home warranties for prospective buyers

Realtors interested in offering home warranty programs to prospective buyers will have an advantage. Still, some are hesitant because the extra steps might be complicated. Here is some information that breaks down the process. 

Realtor home warranty coverage 

Home warranty for realtors is available with different coverage. Still, most warranties cover major appliances like the oven, water heater, washer, dryer, and furnace — plus essential systems like electricity, heating, cooling, and plumbing. 

When choosing which warranty plan is best for your real estate company to offer clients, make sure it covers all of these and any other potential claims. Remember: the more you can broker the deal to meet your client’s needs, the more likely you’ll have a successful sale. 

The cost of a home warranty for realtors

Real estate home warranties are an optional step people can take so they’ll know anything that goes wrong in the first year will be covered. Notably, a warranty differs from insurance (usually necessary when buying a home) to protect your assets in the case of natural or accidental damage. 

Home warranties cost between $300 and $600, depending on how comprehensive the warranty agreement is. Depending on the prospective home, the client can choose coverage for add-ons such as outdoor structures, pools and hot tubs, advanced HVAC servicing, and houses over a hundred years old. The best offers on home warranties are often for first-time home buyers. The warranty is especially appealing for a realtor with many clients making their first home purchase. 

Transferring real estate home warranty

When a home warranty for realtors is activated, they can offer the service to the seller or the buyer. Suppose the seller uses the real estate warranty once they receive the report from the home inspector. In that case, they may begin making the appropriate repairs while making the claims for warranty coverage. If the seller isn’t willing to do the repairs and decides to sell the home as-is, you can apply the warranty to the buyer who may make the repairs. 

Some realtors offer a home warranty as part of their overall fees should someone choose to use their services, while others help facilitate the purchase of a monthly warranty plan or annual coverage. When it’s time for the sale, the buyer may have the option to take over the monthly payments or purchase the annual coverage. If the buyer chooses not to take on the warranty, the policy will be dropped at no cost to the buyer or seller. 

Realtor resources for a home warranty

What’s the difference between a home warranty and home insurance?

Real estate home warranty covers household repairs and replacements, including electrical systems, appliances, and plumbing, while home insurance is to claim coverage for loss of material items due to extreme weather or fire. 

How long does a real estate warranty last?

Real estate home warranty is usually a one-year term, with the option to renew after the one-year mark. Make sure this is an option before choosing a company to go with, especially if you plan to use the warranty for many clients.

Are home real estate warranties worth the cost?

While real estate warranties may not be beneficial to everyone (like someone who has moved into a new home, a condo, or has brand new appliances), most people find home warranties to be worth the cost. Many unexpected household expenses are covered under warranty, saving homeowners on repair costs. 

How to claim a real estate home warranty plan?

If something goes wrong in the home you’re trying to sell or have just purchased, you’re able to make a claim to the warranty company for the coverage of repair costs. Usually, once the repair is approved, you’ll hire a qualified contractor and bill the warranty company. 

Will I have to pay a deductible? 

When the unexpected happens, call the customer service line for your warranty provider, and they’ll instruct you on how to proceed. Sometimes you’ll have to pay a deductible, but that information should be well-specified in your contract agreement so that you won’t be blindsided. Though an item may be covered, you may have to pay for service fees or part of the cost for repair until the provider reimburses you. 

Home warranty for realtors is a wise choice to give real estate agents an advantage over their competitors. This option allows prospective home sellers and buyers to make a less stressful decision. Though home warranties aren’t for every client you have, many people will appreciate the option to have the first year in their new home covered. People often continue their warranty agreements into future years, making it a great long-term decision.

If you are a homeowner or are planning to buy a home, consider adding a home warranty to your to-do list. It’s a financial safety net that can shield you from unforeseen expenses related to your home’s systems and components.