HOME WARRANTY PROTECTION: IT'S NOT JUST FOR HOMEOWNERS

Home warranty protection is meant to serve the needs of new buyers. You're already shelling out money every month on a mortgage, interest rates may increase down the line - do you really wish to worry about possible future home repairs, as well?

It makes more sense to cover yourself with a home warranty. Lock in monthly costs and fees on every aspect of your property by signing up for a contract with an established company. Don't let your budget be blown apart if an air conditioner or heating system breaks down. Don't lose sleep over the sound your refrigerator is making. Just get it fixed - and be grateful you're covered by a home warranty plan.

As useful as this type of insurance is for owners, however, it's also a beneficial tool for real estate professionals. It can save realtors time, money - and reputations. How? Let's review a few of the advantages home warranty protections offer agents:

EASIER SALES
Buyers are looking to save as much money as they can. With closing costs, down payments and mortgage bills looming, borrowers don't want to face the prospect of more unexpected fees down the line. That's why warranted homes sell faster. The fixed rate/standard deductible offers protection to the buyer - and a successful sale to the realtor.

Most potential buyers have already researched the property in which they're interested - they've checked out local schools, measured the driveway for a basketball hoop, calculated how large a mortgage they can afford - but few have considered the long- term assistance that a comprehensive home warranty plan can provide.

Realtors that explain the following perks of home insurance are likely to earn the trust of clients. This will make the sale of a house faster than it would for realtors that gloss over such important details as:

	Immediate help: At any time of any day, pre-qualified service professionals in your area will respond to your calls.
	Money saved: No matter what the cost of a repair or a replacement may be, owners are covered by their deductible.
	Coverage on all items: The age and/or condition of appliances aren't relevant; as soon as you close on a purchase, your accessories are covered.
	Easy transferring: Many companies allow you to transfer your home warranty plan in the event you choose to sell your house. For the same reasons already discussed above and covered more below, this will make such a sale easier and more profitable. The next owner will be relieved he or she is covered by such insurance.

HIGHER COMMISSIONS
A survey by Business Week Magazine found that residences with home warranty protection sell, on average, three percent more than non-protected houses. It's not difficult to see why. Buyers view these properties as a safer investment. They can feel assured that their money isn't going into a home that could cost them thousands more in repairs down the line.

A higher selling price leads to higher commissions for real estate agents. Take a $300,000 house, for instance. Based on a typical six percent commission, agents that do NOT recommend a home warranty walk away with $18,000. Not shabby.

But tack on three percent to the selling price, based on the information above, and consequently, this becomes a $309,000 piece of property. Now, take the same six percent commission; the realtor just made $18,540, a sizable increase of $540 merely for suggesting a warranty that truly will help the buyer in the future.

REDUCED LIABILITY
We live in a litigious society. If there are appliance defects after a sale is finalized, realtors are often the scapegoats. They may face lawsuits from displeased, angered owners. But this can be avoided if clients sign up for a home warranty. Responsibility for maintenance and repairs then falls on the financial shoulders of the insurance provider.

In the end, the goal of real estate agents should be to provide honest help and advice to those undertaking the home buying process. Professionals need to answer questions from clients and comfort their concerns. They also need to speed along closings in an efficient manner.

A home warranty plan allows for all these tasks to be met in a fair way that satisfies every party involved. It's in the best interest of a realtor to recommend these insurance packages because they resolve any conflict over a malfunctioning system, handing over accountability in those areas to those that know best.

It's also in the best interest of a client to accept a home warranty plan for the same reason.

And, hey, if realtors make a bit more money off sales by being up front and helpful when it comes to home warranty protection, there's nothing wrong with that. Everyone wins.

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