REALTY 1 ADVANTAGE

HOME WARRANTY

Receive a free home warranty when you use the services of Realty 1 Advantage to sell or buy a home. It is very difficult to know everything about a home from an inspection. And, as Murphy’s Law generally suggests, if something can go wrong, it will. Statistics show that homes with warranties sell 60% faster and at a higher percentage of the asking price; 96.7% versus 94% of homes without warranties.*

When a seller lists a home with Realty 1 Advantage we will put in place a warranty that covers repairs or replacement of items listed in the schedule of coverage prior to and during closing. When a sale is closed, coverage transfers to the buyer. This gives the seller and buyer protection during and after the sale.

Here’s how it works. Realty 1 Advantage has contracted directly with Fidelity National Home Warranty to provide repairs and/or replacement to the majority of the mechanical systems within the home. We pay for coverage for 1 year for a basic agreement. The seller, and later, the buyer, has the option to increase coverage on items not included in the basic agreement. It goes into effect at the time of listing with the seller and continues for one year from the date of closing for the buyer. The buyer may extend the term of coverage after the year is up.

The seller must have components of the home, including appliances, in good working order to the best of their knowledge at the time coverage begins. Sometimes proof that manufacturer’s maintenance requirements have been followed may be needed.

What is the difference between a homeowner’s warranty and homeowner’s insurance?

A warranty is a service agreement that provides for repair or replacement due to breakdown or normal wear and tear on the majority of mechanical systems within the home. Firms offering warranties are usually not insurance companies. They are businesses that contract with vendors to respond to a client’s needs for fixing something in the home. They represent that all contractors are licensed, trained and insured.

Homeowner’s insurance is an accidental loss policy that indemnifies against stipulated risks. Policies cover things like disasters and liability to others, and providers are regulated by state insurance commissions.

Like insurance policies, warranties have a small deductible that is paid at the time of service, per visit. Fidelity National charges a $50 deductible. Again like policies, warranties have exclusions, which should be reviewed in detail to learn about what exactly is covered, and what is not.

Realty 1 Advantage will pay for a home warranty, thereby giving sellers a better package to offer and buyers peace of mind that their investment is sound. So, it makes sense to have protection before and after the sale—especially at our expense!

*Source: National Home Warranty Association