February 10th is recognized as National Home Warranty Day, which remind us to protect the appliances and components of our homes. Maggie Schmidt is our representative for Cinch Home Warranty, which is directly affiliated with The Danberry Co. With more than 40 years of experience, Cinch prides itself on providing straightforward solutions that make home repairs easier. Maggie has put together helpful information about the benefits of having a home warranty when purchasing a home.
True Story from Maggie:
Tom and Sarah were so excited because they just bought their first home. Several months into winter, as temperatures started to plummet, they started noticing that when they turned up their heat, it would not keep the temperature. The furnace also ran constantly. At dinner, they discussed their options. They were very concerned about contacting an HVAC company because they had very little money saved to pay for a new furnace.
Sarah reminded Tom that they had a home warranty when they purchased their home. They found their information and contacted their Cinch sales representative. They were assured that it was an item that was covered under their warranty. Their representative had a contractor come out to their home, and he explained that their furnace would have to be replaced. The Cinch Home Warranty representative ordered the new furnace, and it only cost Tom and Sarah their $100 deductible.
Tom and Sarah were grateful that they only had a small out of pocket deductible, as opposed to having to spend thousands of dollars that they did not have. Tom and Sarah also continue to renew their policy, as it protects them against unwanted costs, along with providing them peace of mind.
Seller Benefits:
- Free coverage during the listing period
- Use the warranty as a marketing tool
- Warranted homes sell faster and for a higher purchase price, on average, than non-warranted homes
- Provides protection to the sellers after the sale
Buyer Benefits:
- Protection from costly repairs/breakdowns
- Saves money
- Peace of mind
- Renewable for the life of the home
Price Breakdown:
According to Home Advisor, here are the average national cost to replace major home systems:
- Central Air Conditioner: $5,467
- Furnace: $4,286
- Water Heater: $889 (40-50 gallon tank)
- Appliance Repair: $170 (most homeowners spend between $104-$237 on average)
For additional information on the benefits of home warranties, reach out to your real estate professional, or you can reach out to Maggie directly at (734) 752-0861 or mschmidt@cinchhs.com.