MAINTENANCE SERVICES

One of the norms in real estate is to include a home warranty in the buy/sell contract, typically paid for by the sellers. But are they worth the money, and how many of your clients actually benefit from them? Statistics say not very many. The home warranty money machine is a 4.5 billion dollar industry that grows yearly. That’s possible because they sell warranties to homeowners, they know the majority will never use them. That’s not to say a home warranty can’t save your client thousands on equipment or appliance repair. But it’s not likely.

As an inspector, I can tell you that more than 60% of the defects that make my home inspection reports are maintenance-related items, like caulk maintenance, burnt-out light bulb, doors that don’t latch, or windows that are hard to open and close. How often do these items come up in a buyer’s inspection in your real estate deals?  All the time, on every inspection, and most of the time, even on new builds.

Buyers will benefit from this for sure. But what about your sellers? How can it be beneficial for them? Here’s a scenario. You have a client getting ready to list their home. It’s a beautiful home, but as you walk around, you notice all the little nuisance items you know will show up in the buyer’s inspection report. As I mentioned, over 60% of my inspection reports are maintenance items. Imagine none of those items coming up during the inspection. Do you think that would affect how a buyer sees a home?  The service will also come with an inspection/maintenance report that will document everything for the new buyer. It will show all of the maintenance done on the home prior to it being listed and list all of the data tags for the home’s mechanical equipment and appliances to make future maintenance easier and more convenient. Lastly, the service comes with a 120-day Home Warranty that will provide some added protection for your clients should anything come up with their appliances and mechanical equipment while on the market.

So, which one provides the most value for our clients? Let’s look at some pros and cons and the cost of both, side by side.