Home warranty

Pros and Cons

For most people, a home warranty offers peace of mind in the instances of unforeseen problems. A home warranty can also reduce the frustration that often comes with attempting to find the best service company for the problem. Read on for tips on how you can help your clients determine if a home warranty is right for them. 

Home warranties are designed to protect homeowners from unexpected repair costs for major appliances. Generally speaking, home warranties are ideal for homes with appliances over four years old. Warranties for new homes are supplied by builders and will typically cover any structural defects for up to a decade. Other items such as air conditioners, drywall, paint, plumbing, and electrical work may be covered anywhere from six months to two years.

For existing homes, warranty coverage options vary but include things such as interior plumbing, heating, electrical systems, water heaters, dishwashers, stoves, washer/dryers, refrigerators, air conditioners, garage door openers, pool equipment, garbage disposals and spa equipment. 

Agents beware: Not all home warranties are beneficial; there are a number of limitations and exclusions which may apply. Claims have been denied because the company says the problem was pre-existing or because the consumer couldn’t prove that the broken item was properly maintained.

Make sure to encourage your clients to research top companies with the most reliable and trustworthy track records. 

Home warranty research tips to deliver to your clients: 

• The Better Business Bureau recommends that consumers verify a company’s licensing by contacting your state’s real estate commission.
• Read documents thoroughly. Some providers hide their exclusions and limitations in the fine print. Read every word of the contract and understand the pros and cons of the policy.
• Ask specific questions regarding what is and what is not covered in the warranty.
• Understand the coverage limits. You will be able to select which appliances and systems you want covered, but there will be exclusions on these items.
• With older homes, many warranties exclude routine problems that have occurred because of improper maintenance.

• Do the math. Consider the deductible and any additional service fees attached to repair 
• calls and contractors.
• Source the contractors. Most warranty companies utilize their own network of service contractors while others allow you to hire your own. If you hire your own service contractor, you will want to know if you will be reimbursed for that work.

What to look for when choosing a home warranty company:

• Options in coverage plans. Most companies will offer a basic plan and an enhanced plan. If a company offers a hybrid plan, consider that a positive.
• Customizable and specialized add-on plans (including pools and septic systems) are even bigger perks.
• Customized service and deductible fees allow consumers to control the cost of their plan.
• 24-hour claims department
• Ease of claim quote process
• Licensed

Home warranty plan prices depend on properties and what items your clients choose to have covered. Basic plans typically range from $350 to $650 a year. Additionally, there will be deductible and/or service fees to consider.

To help determine whether a home warranty is right for your clients, make sure they read every word of the contract before signing. Home warranty policies are meant to protect homeowners from having to pay big bucks for unexpected repairs. After understanding the pros and cons your clients may find that a home warranty is worth the peace of mind.

Karen Pelkey

REALTOR®  Keller Williams Classic Realty Northwest                    

612-414-2888

www.KPelkey.com

If you are looking to buy or sell in the Minneapolis Metro, let me be your expert!

 

Training

Keller Williams, the world’s largest real estate franchise by agent count, was recognized by Training magazine, the leading business publication for learning and development professionals, as the No.1 training organization across all industries worldwide.
For the fourth consecutive year, Keller Williams placed in the Top 5 on the Training 125, which ranks companies’ excellence in employer-sponsored training and development programs.


“We are incredibly honored by this recognition because of what it means for our people,” said John Davis, president, Keller Williams. “All of our training is focused on helping our agents grow their businesses and help their clients.”
“World-class training is the foundation of providing our agents with the resources and tools they need to fund their lives and create opportunities for their families,” said Davis.”
On January 30, Keller Williams received the No. 1 ranking at Training magazine’s annual awards gala in San Diego, California. With the honor, Keller Williams becomes eligible for induction into the Training Top 10 Hall of Fame for 2018.
“The 2017 Training Top 125 winners don’t just set the bar for employee training and development, they vault over it,” said Lorri Freifeld, editor-in-chief, Training magazine. “They are champions of learning and ensure their employees have the skills to succeed in this competitive, ever-changing world. They insist on training tied to corporate strategic goals, and they have the results to show for it.”

The Training Top 125 ranking is based on a myriad of benchmarking statistics such as total training budget; percentage of payroll; number of training hours per employee program; goals, evaluation, measurement, and workplace surveys; hours of training per employee annually; and detailed formal programs.
"At Keller Williams, we’re not only an open-books company, we’re an open-learning company," said Dianna Kokoszka, CEO, KW MAPS Coaching. "The leaders of our company have fostered a culture of collaboration because we know that together everyone achieves more."

The Training Top 125 ranking is also determined by assessing a range of qualitative and quantitative factors, including financial investment in employee development, the scope of development programs, and how closely such development efforts are linked to business goals and objectives.

“This is an exciting time in training and technology,” said Chris Heller, CEO, Keller Williams. “A decade from now, the way consumers search for and buy homes will be almost unrecognizable from the process today.”

“Our success at keeping our agents at the forefront of this evolution, helping them differentiate themselves in their local markets, and providing an extraordinary customer experience will be determined by how well we train our people, said Heller.”
 In-depth profiles of each of the top five companies will appear in the January/February 2017 issue of Training magazine. For more information on the Training Top 125, visit www.trainingmag.com.

Karen Pelkey
REALTOR®  Keller Williams Classic Realty Northwest                   
612-414-2888
www.KPelkey.com

If you are looking to buy or sell in the Minneapolis Metro, let me be your expert!