The real estate industry is back to a sellers’ market. Just a short while ago, we were seeing very high housing inventory and quickly with multiple offers, in many cases. According to the National Association of Realtors most recent report, home prices increased 6% in the past year. Many professionals estimated that as high as 30% of homes are selling before they ever hit the MLS. Because of this quick shift in the market, many other businesses have been affected.
Home warranty is, of course, most important to me, and I want to reflect on how this is affecting our business. Sellers still need to protect themselves, and buyers (more than ever) need to protect themselves for the 12 months after the purchase of their home. Many first-time homebuyers are in a cash crunch and need to save money when they can. Appliance repairs or mechanical system failures are probably not something they’re saving for, which is why a home warranty is imperative. With mortgage rates remaining low, this leaves some wiggle room to purchase a home protection plan. Another concern with homes being purchased quickly is questions concerning home inspections. Was all the proper maintenance completed? Was a complete home inspection done thoroughly? A home warranty can protect against these things.
On the other side of the equation, it’s still important for the seller and the real estate agent to have the home warranty protection. After the sale has gone through, the home warranty will still provide a safeguard for the seller and agent if there were to be a major appliance or mechanical system failure. Overall, the warranty provides the proper peace of mind for the seller, the buyer and the agent. If something happens, HSA is there to take the calls, arrange the service and help pay for the repairs.