Beyond The Sale The Value of Home Warranties

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Beyond The SaleThe Value of Home Warranties

• Presented By
• HMS North Central

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What is HMS?

• HMS, with almost 20 years experience, is one of
  the largest home warranty providers in the nation
  as well as an innovative leader in the industry.
• 24-hour claims service, 7 days a week
• National network of certified, local repair
  contractors.
• 2-hour vendor window
• Workmanship Guarantee

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BE AN INFORMED AGENT

• KNOW THE VALUE OF AN
• HMS HOME WARRANTY FOR YOUR CLIENTS.
• EDUCATIONPROTECTION

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What is a Home Warranty

• A Home Warranty is a value-added service that
  provides protection against the mechanical
  breakdown of covered systems and appliances
  within the home.

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Purpose of a Home Warranty

• To give a buyer a measure of comfort that goes
  above and beyond what s expected during the
  potentially largest purchase of their life.

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Items Typically Covered Under a Home Warranty

• Air Conditioning
• Heating System
• Electrical System
• Plumbing System
• Water Heater
• Ceiling Fans
• Refrigerator

• Built-in Dishwasher
• Oven/Range/Cooktop
• Built-in Microwave
• Garbage Disposal
• Built-in Trash Compactor
• Washer/Dryer

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Who Benefits from a Home Warranty?

• Sellers
• Buyers
• Agents
• Brokers

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Benefits to Sellers

• Makes your home more attractive to buyers. Eight
  out of ten buyers would prefer to buy a warranted
  home. (Gallup Poll)
• Homes with a warranty sell faster. Up to 50
  faster than unwarranted homes. (National Home
  Warranty Association)
• Increase that chances of a higher selling price.
  Up to 3 more, on average, by making it a safer
  investment for the buyer. (Business Week)
• Reduces the chance of a delayed closing due to
  conflict over a malfunctioning warranted item.
• Helps protect your sale proceeds by reducing the
  chance that youll be asked to reimburse the
  buyer for a breakdown of a covered component.
• Protects against costly repairs on warranted
  items while the home is for sale. All you pay is
  a deductible. See the warranty contract for
  exact coverage

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Benefits to Buyers

• Peace of mind
• Less out-of-pocket expenses
• Competent Professionals just a phone call away 24
  hours a day, 365 days a year.
• Quick response time

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• 62 of home buyers report a failure of two major
  items in the first year of home ownership.

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Average Repair Costs Without HMS Home Warranty

• Furnace 1,250-3,500
• Air Conditioning 1,500-2,100
• Water Heater 375-425
• Oven/Range 700-1,400
• Refrigerator 600-1,000
• Dishwasher 500-700
• Washer/Dryer 200-500

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WITH A HMS WARRANTY

• HOMEOWNERS ONLY PAY THE DEDUCTIBLE ON EACH CLAIM
• THERE IS NO LIMIT TO THE NUMBER OF CLAIMS THEY
  CAN MAKE

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Benefits to Agents

• More and more real estate professionals are
  extending the services they offer their clients
  in an effort to capture a greater share of the
  market and to protect themselves from litigation
  concerning the real estate transaction.

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Benefits to Agents

• Powerful Marketing Tool-to attract listings and
  bind buyers to your listings
• Sell Faster and For a Higher Sale Price-than
  non-warranted homes (business week).
• Reduce After-Closing Problems-due to covered
  mechanical breakdowns.
• Additional Profit Center-for you from HMS fees
  and additional commission earned.
• Easy Claims Resolution-You need not be involved
  in the claims process.
• Cost Free Marketing Tools-to enhance your
  marketing and advertising
• Premium Credits on Errors and Omission Insurance

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Benefits to Agents Using a Home Warranty
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Benefits to Brokers

• Reduced Liability
• Discounts on Errors and Ommisions Insurance
• Reduce after sale problems
• Income through service fees

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How do I present the HMS Home Warranty to my
clients?

• IF YOU GIVE YOUR CLIENTS THE OPPORTUNITY TO
  SAY YES TO A HOME WARRANTY,
• THEY WILL BUY IT.

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Seller Script

• Thank you for giving ____ the opportunity to
  market your home. Our job is to sell your home
  for the highest possible price, in the shortest
  period of time. To help us accomplish this goal
  weve aligned ourselves with HMS, one of the
  nations leading providers of one-year Home
  Warranty programs. Let me explain the benefits
  of the Home Warranty.
• Surveys show 8 out of 10 buyers prefer to
  purchase a home with a warranty. As you can
  imagine a warranty offers buyers peace of mind.
  We know from experience your typical buyer may be
  making the biggest purchase of their life and a
  warranty can help to increase their confidence.
  Certainly no one wants to incur costly repairs
  for mechanical breakdown.
• The fee for the warranty is ____ . As an added
  benefit, HMS will extend coverage to you free of
  charge during the listing period. Doesnt it
  make sense to take advantage of this protection
  and marketing tool. Let me call HMS to start
  this valuable protection for you today.

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Buyer Script

• Id like to describe why a Home Warranty on the
  house youre purchasing makes sense. A Gallup
  Poll shows that nearly 80 percent of buyers
  consider a Home Warranty to be important. After
  all, you get a warranty when you buy a car,
  television-even a toaster. Shouldnt a warranty
  cover the most expensive purchase most people
  will ever make?
• HMS warranties can provide peace of mind that you
  wont incur costly repairs for the mechanical
  breakdown of most major home systems and
  appliances. No one can predict what, if any,
  repairs you will encounter, but can you afford to
  take the chance?
• When something goes wrong, you call a toll free
  number and an authorized repair contractor makes
  the necessary repairs-all you pay is the standard
  deductible. And, there is no limit to the number
  of claims you can make. Sounds good doesnt it?
  Let me show you all the components the Home
  Warranty covers(show brochure).

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Do buyers follow your recommendations?
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Let HMS Protect your clients

• Unexpected home repairs can put a strain on
  anyones budget. With an HMS Home Warranty, your
  clients are prepared in the event of mechanical
  failure of covered systems and appliances for the
  term of their contract. A Home Warranty limits
  unplanned expenditures and assures that your
  clients are in the hands of skilled, competent
  and reliable service professionals. Just like
  you! An HMS Home Warranty also provides coverage
  not offered by homeowners insurance. We believe
  that the home is one of lifes largest purchases.
  Give your clients the opportunity to say yes
  to a Home Warranty and give their home the
  protection it deserves. They will be glad that
  you did.

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How do I order a home Warranty?

• Include an HMS Warranty brochure in every seller
  listing pack.
• Offer the HMS Warranty to every client you work
  with . Give them the opportunity to say YES.
• Order the HMS Warranty 3 Easy Ways
• Phone [phone]
• [phone]
• M-F 830-500
• Fax [phone]
• [phone]
• Online www.HMSnorthcentral.com
• 4. Use the HMS Warranty marketing tools to help
  market your new listing to prospective buyers.

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Thank you for your time.