Why Every Realtor Should Offer a Home Warranty for New Homes

Buying a new home is a significant milestone, but even the most pristine properties can face unexpected issues, like a malfunctioning air conditioner or a dripping water heater. A home warranty for new homes offers essential protection, covering repair or replacement costs for major systems and appliances. Beyond simply closing the deal, offering a home warranty can set you apart as a Realtor who genuinely cares about your clients’ long-term peace of mind.

In this guide, we’ll discuss why Realtors should offer a home warranty for new homes and how it can enhance your reputation, speed up sales, and attract new clients.

What Is a Home Warranty?

A home warranty is a contract that provides coverage for repairs or replacements of major systems and appliances in a home. Unlike home insurance, which covers damages due to fire, theft, or natural disasters, a home warranty covers wear-and-tear issues, such as when a furnace breaks down after years of operation.

Commonly included items in a home warranty plan are:

• HVAC systems
• Plumbing and electrical components
• Appliances, such as refrigerators, dishwashers, and ovens

For new homeowners, securing a warranty plan is easy. They choose the coverage that aligns with their needs and pay a monthly or annual fee. When a covered item breaks, the homeowner pays a modest service fee — much lower than the cost of replacing or repairing an entire system.

Now that you know how a home warranty works, let’s explore why Realtors should offer this service for new homes. Learn more about home warranty plans and how they work. 

Why Realtors Should Offer a Home Warranty for New Homes

Offering a home warranty for new homes can transform the way buyers view you and the properties you sell. Here’s why:

1. Build Trust with Clients

A new home often comes with hidden costs that buyers may not anticipate, such as a faulty water heater or broken air conditioner. By offering a home warranty, you show that you understand these concerns and that you care about your clients’ long-term well-being. This builds trust and assures buyers that you’re looking out for their interests well after the sale is completed.

2. Generate Word of Mouth

Even new homes can have issues, from appliance malfunctions to electrical problems. If a buyer encounters these problems without a warranty, they may end up spending hundreds or thousands of dollars on repairs. A frustrated buyer is unlikely to recommend you to friends and family, which could harm your reputation. Offering a home warranty ensures your clients are protected and satisfied, leading to positive referrals.

3. Stand Out in a Competitive Market

Many Realtors focus on the price or features of a home, but by offering a home warranty, you’re providing something valuable that can’t be seen: security. Clients will notice that you go the extra mile to protect their investment, which helps you stand out from other agents.

4. Close Deals Faster

Buyers are more likely to make an offer on a home when they know that any major repairs will be covered. If they’re deciding between two homes, the one with a home warranty may feel like the safer option. This boosts sales speed and positions you as a Realtor who genuinely cares about the buyer’s investment.

The Benefits of a Home Warranty for Buyers

For buyers, the primary benefit of a home warranty is protection against unexpected repair costs. Imagine moving into a new home only to have the HVAC system fail on the first hot summer day or the water heater leak just a few months after closing. A home warranty steps in to cover the costs of repairs or replacements, offering peace of mind.

It’s essential to compare the home warranty vs. builder warranty for new homes. While builder warranties may cover some repairs, they often come with restrictions and limited coverage. A home warranty, on the other hand, fills in the gaps and covers a broader range of systems and appliances, ensuring more comprehensive protection for your buyers.

With a home warranty, your clients will be less stressed about the possibility of unexpected repair bills. This type of protection is crucial, especially for first-time homeowners who may not have the resources to handle large repair expenses.

How a Home Warranty Can Enhance Your Reputation as a Realtor

Offering a home warranty is a simple yet powerful way to show your clients that you care about their happiness and well-being. By providing peace of mind and protection against costly repairs, you build a foundation of trust that can lead to lasting relationships.

A satisfied client is likely to tell friends and family about their positive experience, resulting in more referrals for you. A home warranty helps solidify your reputation as a Realtor who goes the extra mile, making you the go-to professional for anyone in the market for a new home.

Furthermore, offering a home warranty shows your clients that you’re not just focused on closing a deal, but also on helping them settle into their new home comfortably. This attention to detail will set you apart and leave a lasting impression.

How to Present a Home Warranty to Clients

When offering a home warranty, timing and approach are key. Ideally, introduce the idea early in the process — perhaps during the first round of property viewings or when discussing the pros and cons of various homes. This allows you to address potential concerns before they become objections.

If buyers are hesitant about the cost, highlight the value of a warranty: it’s a small price to pay for the peace of mind it provides. Emphasize that a home warranty protects their investment, reducing the risk of major financial burdens after moving in.

By framing the warranty as a proactive and considerate solution, you’ll make it more appealing to clients who want to ensure their new home is truly protected.

Protect Your Clients’ Investments (and Your Success) With ARW Home

Incorporating a home warranty into your real estate services is a smart way to stand out in a competitive market. Offering a home warranty not only builds trust but also speeds up sales and enhances your reputation as a dedicated Realtor.

At ARW Home, we make it easy to provide your clients with top-notch protection. Our home warranty plans cover essential systems and appliances like HVAC, plumbing, and kitchen appliances, ensuring that your clients are covered without the guesswork. Plus, we offer flexible coverage options, so you can tailor plans to meet your clients’ needs.

Partner with ARW Home today to protect your clients’ investments and help you close deals faster. Reach out to us for more information or to explore our plans online.

Final Thoughts

Offering a home warranty to new home buyers is a valuable tool for Realtors. It helps you stand out from the competition, builds trust with clients, and speeds up the sales process. With a home warranty, you provide peace of mind, ensuring that your clients feel protected in their new home.

If you want to offer your clients the best protection, consider working with ARW Home. Our comprehensive warranty plans offer the coverage your clients need, and it’s a great way for you to enhance your reputation as a Realtor who truly cares about your clients' long-term satisfaction.