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Why You Should Include a Home Warranty in a Selling Offer

Why You Should Include a Home Warranty in a Selling Offer

Buying a home has never been a stress-free experience. There’s a lot to worry about: financing the house, making sure you’re not buying a lemon, and legally documenting everything. Although there’s not much that can alleviate the stress that comes with buying a home, there are steps that can be taken to minimize that stress and provide peace of mind to buyers, sellers and real estate agents alike. One of those steps is providing a home warranty with a home’s sale. A home warranty protects the buyer of a home from unexpected repairs and replacements, but it may surprise you to learn that is also protects the seller and real estate agent.

A Home Warranty Protects the Buyer

As a buyer, buying a home is often the largest purchase they’ll make in their lifetime. They want to make sure they’re getting a great deal and aren’t stepping into a money trap. This is where a home warranty is often used to provide peace of mind to the buyer.

A home warranty plan covers systems and appliances in a home, like an A/C unit, furnace or oven, when they fail from normal wear and tear. Unfortunately, all systems and appliances within a home have a lifespan. After they’ve been used for a while, their mechanical and electrical parts may begin to fail because they are old. When those systems and appliances fail, it can be costly to have them repaired or replaced. For example, a new HVAC system can cost $5,230 on average. This is when having a home warranty can protect a buyer. If the home’s HVAC system fails from normal wear and tear, the home warranty will repair or replace the unit for a small service call fee. (This fee ranges between $50-$100 depending on the home warranty company.)

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Chad Holmes, Director of Sales at Landmark Home Warranty, said including a home warranty on a home’s sell can calm a buyer’s worries. “What the warranty does is provides them that additional peace of mind, going forward, if something fails, they do have that warranty in place,” Holmes said. “It lets them know if something breaks down from normal wear and tear that it will be repaired or replaced.”

One thing that buyers should be cautious about, however, is knowing what is and isn’t covered in a home warranty contract. Sometimes home inspections will bring up problems found in the home before closing, and the buyer’s agent may tell the buyer it will be all be covered under the home warranty. The problem with that is there’s a good chance the home warranty won’t cover the pre-existing problem. It is imperative to discuss the problems brought up in the home inspection, because the buyer could get the problems fixed with the seller, or get a discount on the house.

Why wouldn’t a home warranty cover a problem brought up in a home inspection? There are two reasons. First, most home warranty contracts begin on the date of closing. Like any warranty or insurance, a contract won’t cover something that was already broken before coverage started. If a buyer knowingly purchases a home with a broken furnace and then calls the home warranty company to repair it, there’s a good chance they won’t, since it was broken when they bought the home. This is just like if you totaled your car, and then tried to insure it and have the insurance pay for the repairs. It’s industry standard that these sorts of pre-existing conditions aren’t covered.

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Second, most home warranties don’t cover abuse or neglect brought on by a homeowner. If the seller has forgotten to change out his or her furnace filter for years and this is noted on the home inspection, the buyer should not expect this to be covered by a home warranty. They should ask the seller to provide some sort of compensation or repair the furnace before they purchase the home.

A home warranty’s main function is to repair or replace systems and appliances that fail from normal wear and tear. If a buyer understands what is and isn’t covered in a home warranty contract, they can better use it to help them offset expensive and unexpected repairs, Holmes said. “Although a home warranty isn’t a coverall, it gives homeowners the ability to take care of things that are unexpected expenses that come as a part of home ownership,” he said.

A Home Warranty Protects the Seller

At this point, it may seem like a home warranty is only beneficial for a home’s buyer. In fact, a home warranty can also protect the seller. Kimberly Cameron, Realtor and Associate Broker at Re/Max Properties West, said she includes a home warranty with every listing.

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When a seller includes a home warranty in a selling offer, most companies offer free listing coverage. This means the seller doesn’t have to pay for anything except service call fees up until the date of closing, Cameron said. At that time, if the buyer wants the home warranty, the seller will pay for their plan.

“If a buyer does not request a warranty, it is cancelled prior to closing with no charge to my client,” she said.

Shelly Walters, a Realtor for Re-Max Ability Plus, said this free listing helps the seller in two ways. Not only can it cover problems brought up by the inspection as long as they’re caused by age and normal wear and tear, but it can save the sellers money. “Since the home warranty covers a seller during the listing, I tell them it is a no lose situation,” she said. “If the sellers don’t choose the home warranty that they want to put with the listing, the buyer may request a much higher value of the home warranty. Therefore, they are also choosing the home warranty price.”

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Not only that, but according to a study done by American Home Shield, a home warranty sells a home faster and for more money. Holmes said this was most likely because a buyer feels more secure in buying a home with home warranty protection. “As the homeowner is looking at these homes, and comparing them, and they see that one home includes a home warranty they feel more comfortable buying it because they know breakdowns will be taken care of,” Holmes said. Bradley Asbury, Realtor/Agent for Century 21 Homestar, said he provides a home warranty on each of his listings for this reason. “There is more to it (psychologically) than just the warranty,” he said. “If you don’t offer it, buyers have almost a fear, that something is wrong, or being hidden. They associate the warranty as you putting your stamp of good faith on the property.”

A Home Warranty Protects the Real Estate Agent

Finally, including a home warranty on a home’s sale also protects a real estate agent. When selling a home, each Real Estate Brokerage must have Errors and Omissions Insurance, which will cover the brokerage and real estate agent if something has gone wrong while selling the home. Suzette Peoples, Broker for People’s Properties, said that most E and O insurance offers discounts for real estate brokerages who include home warranties with their sales.

Holmes said that this is because a home warranty provides an extra layer of protection for the buyer, and the insurance company recognizes that fact. “I think what that does is it shows that there’s something in place that will take care of the homeowner if something does go wrong. And then if the homeowner didn’t have that in place, they may be more likely to talk to the real estate agent,” Holmes said.

Have you used a home warranty? What has your experience been?

Featured photo credit: couple looking on house/luxorphoto via shutterstock.com

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Last Updated on February 20, 2019

13 Tips to Face Your Fears, Grow with Them and Enjoy the Ride

13 Tips to Face Your Fears, Grow with Them and Enjoy the Ride

Fear. I spend my life talking about fear — fighting fears, fixing fears and understanding fears. And yet I doubt I get 10 calls a year from people saying “Mandie can you help me fix my fear?”

Why is this so critically important to you?

The realization for me is that fear is not the fundamental driving force in your life it’s what regardless of whether I’m talking to a doctor, a teacher, a CEO’s, a senior citizens or teenager – every single one of those conversations has a direct correlation with your world.

Fear can range from the overwhelming desire to look away or stop in your tracks to literally fleeing your country and the life you knew. In this article, I will share you with 13 tips to face your fears and enjoy the ride.

1. Know That Fear Is Real, but Can Be Overcome

Right now around the world people are facing fear — real fear. Fear that I pray my children and I will never experience. Does that lessen my fears or your fears in your relativity safe 21st century life?

When I look at the world we all live in, I find that fear like so many other emotions can mean so many different things to so many different people:

  • The child who has to be physically dragged to their first day of school.
  • The man facing the judge.
  • The woman with her hand poised over the buttons over her phone because she has to walk down a dark corridor late at night alone.
  • The man as the surgeon says “count backwards from 10 Mr Smith.”
  • The woman that’s told “We are sorry, we can’t help you.”
  • The man that faces the empty circle of a gun and prays for his very existence.

These and a million more (Portrayed in every kind of movie, book or song you could imagine) are what make us human. We face fear and somehow move forward or are stopped in our tracks.

Like the rabbit in the headlights of the car that veers off through the field away from the tyres of the car or stays still praying for salvation. Like someone will save them. Sound familiar?

Fear is huge. Fear is everywhere and yet fear can be overcome, controlled and can even be a power for good.

2. Accept Your Fear

Firstly if you aren’t facing the barrel of the gun, atrocities that make the news or impeding death, that’s a good start. However it doesn’t mean your fear is any less real.

We are quick to say “I can’t moan, my life is not as bad as X.” While in theory, that’s honorable your appreciation of Mr. or Mrs. X’s horrific life won’t change anything directly. So accept your fear is relative to you.

And here’s what can be done.

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3. Get Some Perspective

I found myself asking anyone that would answer “what is your worst fear”. The answer that intrigued me the most came from my daughter (15 years old and she usually has a copy of Fight the Fear – my book – in her school bag so she can help someone else be as positive and confident as her. No matter what life throws up.)

And her fear, surprised me — heights. I pointed out that we live in a sprawling bungalow (one storey) and the highest she goes is two storeys’ at school! She laughed but added, fear isn’t like that Mum. I know it’s not a real fear, but it’s like when you stand on a chair and feel unsafe.

That girl will go far. Because she truly gets fear.

We know something is scary and yet we still do it. Why? Because we have a perspective to the fear. When you lose perspective, it can feel too big, and too scary.

So look around you to get some perspective on your fear:

  • Are you really at risk?
  • Will this kill you?
  • Which leads us on to..
  • If the worse was to happen what would it be?

4. Hold a Hand

As a coach, it is my job to holds someone’s metaphorical hand and help them face a fear.

Like the child petrified of the thunder storm or the teen that can’t get back in a car again after failing their test, your job as a parent is to reassure, encourage, enable and motivate someone to face something that ideally they never would choose to again.

We know many of our fears aren’t real. However, it is only when someone guides us with love, respect, lack of judgement and safety are we able to get through fear. And trust me, you can get through your fears. I’ve seen it so many times.

Ask yourself:

  • If the worse were to happen, what would that be?
  • Could that really happen?
  • If the worse did happen, how would you recover?
  • If the worse were to happen, what would you need to do next?

By seeing fear as not the end destination but part of being human, you can see through it’s wily evil ways and move forward.

5. Know Whose Hand You Hold Either Physically or Emotionally

This helps with fears for the rest of your life.

Think of someone you can always rely on (and ideally you won’t just answer yourself because that adds a lot of pressure to your existence!) And you will find that you’ve already found a way to get through fear.

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The beauty of this is that it means that fear becomes part of life not something to be feared and shied away from.

It means you know you can turn to your friend, partner, colleague, parent, sibling and say “Right I need to deal with this, and I’m going to need you to help me.”

For one moment, think about it from the other person’s view point. When we get to help other people we feel valued, loved, respected and lots of other positive emotions and we get a good dose of positive chemicals setting off in our bodies too.

Your fear, and your determination to fight it, helped someone else too. Now that’s cool right?

6. Understand That There Are Some Things Fear Will Never Touch

I like to find role models in life — people who have faced heroism, history changing moments, war, atrocities, miracles, life saving inventions.

Not everyone was looking for greatness, however they all found it. And one of my favourite books to date is written about Alistair Urquhart, the forgotten highlander. If this doesn’t get turned into a film in the future, then no man’s story is likely to.

Alistair went through the most horrific experiences in the 2nd world war. If you think of one of the awful things that happened back then in our world, Alistair went through at least 3 of them! Asked afterwards how did you cope? He talked about how whatever they did to his body, no matter how they starved, tortured, threatened or mocked him, they couldn’t have his mind. In his mind he was free.

Of all the people’s voices I’ve heard in my head over the years, this is one of those statements that reminds me anything is possible if you have faith and hope.

Look for the things in life that fear can’t touch. They will create confidence and faith for the future, whatever you face. And they will give you a sense of why being you is awesome.

Of all the billions of people on this planet, no one will have an answer identical to yours!

7. Process Your Fears to Carry on with Life

Being brave is not about sticking your chest out and smiling regardless of what hell you endure. It is about finding a way to emotionally process your fears to be able to keep going.

I have a tool kit of things I can rely on – tools, strategies, techniques. They include people to hug or talk to, music. hobbies, walks on the beach and even my favourite food. It sounds mad but at the times where I have questioned “how will I get through this?” I’ve found immense joy in doing the most unlikely of thing that makes me smile.

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It may be a short lived moment of happiness. However, it reminded that nothing stays the same and I can find away.

One client told me that it was crazy when it felt like their world was falling around their ears to run a bath to the brim (you don’t waste water) get the best bath oils, light too many candles, lock the door and drink a glass of bubbly (champagne is only for special occasions.)

Did that moment fix the disaster that my clients life felt? No, however it gave them a moment of calm and the brain is far quicker to find solutions, resolve and motivation to keep going when you do that.

It may feel like madness to do something you love, however it can be a powerful way to help you find solutions to the fears you face in life.

8. Assume the Worse

If you read the statement from the client above. Notice how they assumed it was wrong to fill the bath up to the top? How bubbly is only for special occasions?

Think how naughty they felt to be doing something that was not allowed?

  • Think about what age it may have made them feel?
  • Think about how they feel about champagne?
  • What special moments it’s been a part of in their lives?

And you can see how the assumptions they made about their “right” to have these things was not healthy.

When I drag the assumptions out of people’s words for them to see, they are often struck by how negative the words make them feel.

Don’t assume your words aren’t impacting on you. You can go through fear and actually enjoy the ride when you take the time to understand how you are letting words get to you.

9. Take a Fear That Feels Insurmountable Right Now.

If you were to repeat it to me out loud, what would you say?

Would you have blame on yourself in there? Would you assume others can do it and it’s just you? Would you feel small, unsuccessful, useless, unworthy?

Usually, when you do this exercise, you are able to spot the untruths that run wild in your head convincing you that you are doomed. And rarely when we are faced with our assumptions is there is a lot of evidence to them.

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10. You Are Not Defined by Your Fear

One fear does not define your life – be mindful of that. It is likely to lead you to thinking of all the times you’ve succeeded and bring a moment of calm, confidence and faith back to you.

11. Go with Fear

When you learn to go with fear, you could find yourself actually having fun, no seriously – having fun.

I have a few amazing clients I’m working with right now who would describe themselves as life long worriers, or pessimists. In the past that has served them well, enabling them to keep safe, steer clear of risks and even develop strategies in the event of disasters. However, now they find it’s becoming hard to break the cycle and they really want to because it’s holding them back.

Notice how they’ve found their hidden fears and want to face them?

One client said “I knew this was going to be tough, and I knew I couldn’t fight it alone and I knew you would be the one to help me.” Before I sat an incredibly successful, confident, capable business owner with a family and a social life to die for.

However, I’ve learned that the most successful looking lives can hide things that impact on life, success, love, happiness and business.

We didn’t start with the fear that they felt was holding them back, we broke the fear down, and found lots of little obstacles that had been deemed as “life” and “unchangeable” and “that’s just the way it is” by developing awareness to the little steps on the road to their obstacles to happiness and success they were able to tackle them in a different way.

12. Discover Great Skills in Your Scary Moments

And in that clients words “I came here to work with you to grow my company, and my own personal skills. I didn’t expect to get the children to be cleaning up after themselves and my partner being more attentive! It all feels a little magic.”

The moral is that out of the scariest of moments, we can find great skills we didn’t know we had. Find better, healthier, happier ways to live and find ways to enjoy life more. (And have a bit of magic!)

What a great place to be in ready for the next fear that thinks it’s going to get in the way of you, right?

13. Own Your Fear

Think back over these tips and come up with at least one example for each one. Write them down. Put them on your phone. Turn them into a piece of art. Turn them into a poem. Frame them. Go for a fast walk across the fields, beach, down town and repeat these things in your head to the sound of your feet on the ground.

We rarely take the time to appreciate how far we have come, how much we can achieve or what we are capable of – by really owning the tips in this article you will have given your brain a big fat dose of “Damn right I can do this!” and the motivation and accountability to say “Let’s find a way” through any fear.

You can’t help but feel good when you see that can you? And fear doesn’t stand a chance, does it?

More Resources About Fighting Fear

Featured photo credit: Ben White via unsplash.com

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