Home Warranty: Who Needs One? This Boulder Realtor Says YOU DO!

This particular Boulder Realtor thinks it’s wise for both Sellers and Buyers to engage a home warranty.

I continue to consult with both buyers and sellers about the merits of a home warranty.

When I market a home for sale for one of my selling clients, I always include a warranty in the transaction. It protects the seller during the listing period. (The time when the house is on the market for sale).

When assisting buyers especially if I’m working with a buyer as a “Buyer’s Agent”, I find it’s to my client’s benefit to help them understand why they need a home warranty and why most sellers are willing to pay for a warranty that covers a buyer after the sale.

Through my ERA office, we are teamed up with American Home Shield (AHS) to offer both buyers and sellers home warranty products. Here’s some more detailed information from AHS:

A Win-Win Proposition

Home warranties represent a valuable asset to agents, sellers and buyers alike. Since they help alleviate buyer concerns about costly covered home repairs, home warranties make selling homes easier for agents and sellers.

AHS home warranties offer valuable protection on major systems and appliances including heating, plumbing, electrical and central air conditioning systems. AHS coverage gives buyers security and reduces agent and seller liability. Coverage applies to systems and appliances in good working order at the start of the contract and properly maintained (i.e., AHS does not cover pre-existing conditions).

What is “Basic Coverage”?

Generally, basic coverage for a home measuring less than 5,000 square feet, regardless of age, includes:

1. heating
2. plumbing
3. electrical system
4. water heater
5. major appliances such as range/oven/cooktop, dishwasher, garbage disposal and more

Home warranties are available for homes that measure over 5,000 sq ft for an additional fee. Please contact us online or call 1-800-735-4663 for complete details and information.
How soon may my clients request service?

Your clients may request service as soon as they need it. There are no waiting requirements and no exclusionary periods except one: if any covered system or appliance breaks down due to rust or corrosion during the seller’s or the first 30 days of the contract for the buyer, American Home Shield will not cover repairs or replacement.

The reason for this exception is that it takes a period of time for rust and corrosion to build up, and AHS does not cover pre-existing conditions.
How long does it take for warranty protection to begin?

Protection for the home buyer begins at the closing date of the home sale upon receipt of funds and continues for one year for the homebuyer. Real estate professionals may call 1-800-735-4663 to order.
What number will my clients call when a covered system or appliance breaks down?

Your clients may visit www.ahsservice.com or call our 24-hour toll-free number, 1-800-776-4663 to request service. Then, AHS will have a local technician contact them during normal business hours to set up a mutually convenient appointment time.

If the problem is an emergency (for example, the temperature is extremely cold, gushing water is causing secondary damage, etc.) we can expedite the call to get your clients quicker service.
Will the homeowner pay the technician anything during the service visit?

Yes, there is a trade service call fee due when the technician calls on your client. The fee covers the initial service technician visit for each covered trade, as well as any additional service visits required for the same breakdown within 30 days of the original service date. Additional charges may apply to specific repairs and replacements.

Each fee applies to one type of trade covered. For example, if a client calls in a problem with the A/C system (heating, ventilation and air conditioning) and a malfunctioning dish washer (appliance), two fees would apply: one for the A/C system and another for the appliance.

The reason a separate fee applies to each different trade is that one contractor may be an HVAC expert, but not as qualified to fix a dishwasher. If he is able to fix both problems, there may be different parts to order for each and separate visits to the home.
Is the AHS plan renewable?

Yes, warranty-holders may renew the AHS plan (at the option of AHS). American Home Shield will notify the homeowner in advance of the expiration date, and AHS will offer a variety of convenient payment plans.

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