by Michele Gillis
Staff Writer
While buying a home “as is” or one that’s sat on the market for some time has become commonplace, purchasing a home warranty may come in handy.
A home warranty safeguards customers against financial setbacks due to costly repairs or replacements of covered appliances and major systems including central heating and air, electrical and plumbing.
It is important to know up front what is and isn’t covered under the homebuyer’s warranty.
“I think home warranties are very important,” said Debbie Tufts, a Realtor with Keller Williams Atlantic Partners. “I never write a contract for a seller or a buyer without encouraging them to add a home warranty.”
Kim Warren of 2-10 Home Buyers Warranty said right now in Florida, home warranty usage is surprisingly low.
“I think it is because everyone is trying to get a great bargain or deal and they think if they get a great deal that they don’t want to spend the extra money to get a home warranty,” said Warren. “But, I think that is the greatest risk right now. Homes are sitting on the market for longer … things are sitting in the house and are not being used or maintained, so more than ever you don’t know what you are getting when you buy a home.”
Other reasons buyers don’t get a home warranty are because the property is being sold “as is” and sometimes means the appliances have been stripped. Even though the buyer will have to purchase new appliances, the home warranty would cover the major systems in the house that still remain.
Tufts said she feels agents need to educate the consumer on the importance of home warranties.
“It is important to take the time to have a good understanding of the product and what it does for the client,” said Tufts. “As an agent, if you can talk about something like this that adds value to a buyer or seller, it is one more thing showing that we understand our industry and it is just one more facet of offering value to our clients.”
Tufts also encourages sellers to get a home warranty.
“In the listing agreement, I always encourage the seller to go ahead and get a warranty in place as a selling feature,” said Tufts. “It’s added value.”
Why get a home warranty in place as a selling feature?
“Because I think it shows that the seller has enough confidence in their home that they are willing to offer a warranty to a buyer,” said Tufts. “No. 1, if something goes wrong it is a great product to have and it is cost efficient, which is very important in this market. Second, it encourages the seller to keep up with maintenance and get things repaired in their own home prior to selling it.”
The idea is that the seller will also purchase a homebuyers warranty for the buyer as well. Usually it costs around $60 to add seller’s coverage and less than $300 for a buyer’s warranty.
Warren said having a home warranty on a home for sale is a proactive tool.
“It helps market their home above and beyond other homes for sale in the neighborhood that are not offered with a home warranty,” said Warren, “and it shows the sellers are really serious standing by the quality of the home, systems and appliances in the home and that they really want the best protection for whoever buys their home as well.”
Keller Williams International just announced that they have formed an alliance with 2-10 Home Buyers Warranty, which has been in business for 30 years. Warren is the local 2-10 Home Buyers Warranty representative.
“We have very strong presence in Jacksonville on the builder’s side,” said Warren. “We are the longest standing provider of new home construction warranties. The builders sign up with 2-10 and they offer the product to the new homebuyers.”