St. Louis Real Estate Weekly Tip: Home Warranty Protection

Some real estate professionals consider home warranties a security blanket for everyone involved in a real estate transaction – the buyer, seller and agent.  Agents want to give their clients the power to protect their homes and see the home protection plan as a way to give each transaction added value.

The tip of the week is:  Home warranties offer a measure of financial protection if certain home appliances need to be repaired or replaced, during or after the sale. They also cover repairs of malfunctioning systems.  They typically cover heating and cooling systems, plumbing and electrical systems as well as major appliances. 

These policies can help buyers feel more confident about their purchase and some feel they may reduce the seller’s liability if something goes wrong immediately after the money has changed hands and the keys exchanged. Warranties are popular incentives that sellers use to attract buyers.  “Of the 40 percent of sellers who use incentives, nearly a quarter used home warranties,” according to the 2012 National Association of Realtors Profile of Home Buyers and Sellers.

Home warranties typically range from $250 to $550 depending on coverage.  The websites for the different local firms offer quotes online.    (CLICK HERE FOR LOCAL FIRMS) 

You can also get a quote from a variety of firms online as well.  (GET QUOTES) When a covered system breaks down, you simply place a claim online or call our toll-free number, and the home warranty company will do the rest!  The company immediately dispatches a contractor to make the repair. The homeowner pays the contractor a small service fee, usually $75 to $125 and the warranty company pays the rest for all covered items. You don't have to hassle with finding a contractor or worry about negotiating the cost of the repair work.

In the event that a covered system or appliance cannot be repaired, the companies usually replace it with a system or appliance of comparable or better quality. Real Estate agents tend to recommend these policies and often assist in answering questions about these warranties. However, if a buyer finds a find to file a claim, it’s best to contact the company who carries the policy for the property. 

2-10 Home Buyers Warranty (2-10 LINK) is a firm that I have found offers extreme customer service.  Sally Amaral, the account executive in the area, says their motto, “Long Live Happy Homes!” says it all. There is no limit on the amount of service calls you can call on the home.  According to the website for 2-10.com, most buyers call 2 times a year. This firm has an interactive house on their website, where one can take a tour to see what is covered.  Their coverage includes the likely systems and appliance that tend to break downs in the home.   

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Beverly Taki is a Missouri-licensed real estate broker who has successfully represented clients for 25 years.  She is a broker salesperson at Keller Williams Realty St Louis. 10936 Manchester Road, St. Louis, MO   63122.

Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in negotiation and mediation. Taki can be reached at beverlytaki@kw.com or 314-677-6366.  Her website is beverlytakistlouis.com. Her blog is http://www.realestatestlou.com.