Adding a home warranty to your listing or closing adds value to your business. Experienced real estate agents are well aware of this. We already know that a home warranty can help sell your listing faster and for more money. And when offered as a closing gift to buyers a home warranty makes a memorable gift that helps generate repeat business. However, misinformation abounds and the home warranty industry is no exception. Following are the top five home warranty myths debunked:
The top five home warranty myths debunked:
1) HOME WARRANTIES ARE TOO EXPENSIVE
Replacing large systems and appliances can cost thousands of dollars whereas most home warranties average between $300 to $600 annually. The average homeowner spends 1% to 4% of their home’s value each year on maintenance and repairs which averages a whopping $2000 to $8000 a year. Yikes! In comparison, your home’s major systems–things like the HVAC system, water heaters, electrical or plumbing–are covered under a home warranty. So are appliances like washers, dryers, refrigerators, and so forth. Even things like pools, spas, roofs, outdoor kitchens and septic systems can be covered by using options that are added on to your home warranty.
2) HOMES WITH NEW APPLIANCES DON’T NEED A HOME WARRANTY
Brand new appliances aren’t immune to breaking down within the first few years. Over half of appliance malfunctions occur within the first 5 years. And 18% happen in the first year with 33% in two years. Despite 90% of homeowners being offered protection plans, statistics show that 76% did not have a warranty in place on new appliances. According to Consumer Reports, 20% of dishwashers and 31% of side-by-side refrigerators with icemakers tend to break in just four years. This is because consumer-product companies are constantly releasing new products, resulting in shorter product life-cycles that make it necessary to buy the new products.
3) FILING A SERVICE REQUEST IS TOO COMPLICATED
With the right company, filing a service request can be simple. Fidelity National Home Warranty has round-the-clock service requests at homewarranty.com or by calling 1-800-TOCOVER.
4) I MAINTAIN MY OWN APPLIANCES
Easier said than done. Most homeowners don’t have the time or expertise to properly maintain their own appliances. Even if you do find the time to maintain your appliances, unexpected breaks, leaks, and malfunctions can occur. You can count on a Fidelity National Home Warranty to get the maintenance you need. We also offer preventative maintenance, like our seasonal HVAC Tune-Up Option. For a nominal fee, you can have this option added to your home warranty and have your heating and air systems inspected twice a year.
5) I ALREADY HAVE HOME INSURANCE
Home insurance and home warranties both have the word “home” but that’s where their similarities end. Home warranties cover the repair and replacement of your home’s major systems and appliances. Home insurance, on the other hand, covers the repair of your home and replaces your property after events such as fires, theft, storms, and other natural disasters.
An ounce of prevention is worth a pound of cure, as the old saying goes. Getting a home warranty with a reputable home warranty company–like Fidelity National Home Warranty–will make sure your pound of cure is firmly in place before things break down.