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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 August 20, 2019

How to Control Your Thoughts and Be the Master of Your Mind

How to Control Your Thoughts and Be the Master of Your Mind

Your mind is the most powerful tool you have for the creation of good in your life, but if not used correctly, can also be the most destructive force in your life.

Your mind, more specifically, your thoughts, affect your perception and therefore, your interpretation of reality. (And here’s Why Your Perception Is Your Reality.)

I have heard that the average person thinks around 70,000 thoughts a day. That’s a lot, especially if they are unproductive, self-abusive and just a general waste of energy.

You can let your thoughts run amok, but why would you? It is your mind, your thoughts; isn’t it time to take your power back? Isn’t it time to take control?

Choose to be the person who is actively, consciously thinking your thoughts. Become the master of your mind.

When you change your thoughts, you will change your feelings as well, and you will also eliminate the triggers that set off those feelings. Both of these outcomes provide you with a greater level of peace in your mind.

I currently have few thoughts that are not of my own choosing or a response from my reprogramming. I am the master of my mind, so now my mind is quite peaceful. Yours can be too!

Who Is Thinking My Thoughts?

Before you can become the master of your mind, you must recognize that you are currently at the mercy of several unwanted “squatters” living in your mind, and they are in charge of your thoughts. If you want to be the boss of them, you must know who they are and what their motivation is, and then you can take charge and evict them.

Here are four of the “squatters” in your head that create the most unhealthy and unproductive thoughts:

1. The Inner Critic

This is your constant abuser who is often a conglomeration of:

  • Other people’s words; many times your parents.
  • Thoughts you have created based on your own or other peoples expectations.
  • Comparing yourself to other people, including those in the media.
  • The things you told yourself as a result of painful experiences such as betrayal and rejection. Your interpretation creates your self-doubt and self-blame, which are most likely undeserved in cases of rejection and betrayal.

The Inner Critic is motivated by pain, low self-esteem, lack of self-acceptance and lack of self-love.

Why else would this person abuse you? And since this person is actually you– why else would you abuse yourself? Why would you let anyone treat you this badly?

2. The Worrier

This person lives in the future; in the world of “what ifs.”

The Worrier is motivated by fear which is often irrational and with no basis for it. Occasionally, this person is motivated by fear that what happened in the past will happen again.

3. The Reactor or Trouble-Maker

This is the one that triggers anger, frustration and pain. These triggers stem from unhealed wounds of the past. Any experience that is even closely related to a past wound will set him off.

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This person can be set off by words or feelings, and can even be set off by sounds and smells.

The Reactor has no real motivation and has poor impulse control and is run by past programming that no longer serves you, if it ever did.

4. The Sleep Depriver

This can be a combination of any number of different squatters including the inner planner, the rehasher, and the ruminator, along with the inner critic and the worrier.

The Sleep Depriver’s motivation can be:

  • As a reaction to silence, which he fights against
  • Taking care of the business you neglected during the day
  • Self-doubt, low self-esteem, insecurity and generalized anxiety
  • As listed above for the inner critic and worrier

How can you control these squatters?

How to Master Your Mind

You are the thinker and the observer of your thoughts. You must pay attention to your thoughts so you can identify “who” is running the show; this will determine which technique you will want to use.

Begin each day with the intention of paying attention to your thoughts and catching yourself when you are thinking undesirable thoughts.

There are two ways to control your thoughts:

  • Technique A – Interrupt and replace them
  • Technique B – Eliminate them altogether

This second option is what is known as peace of mind!

The technique of interrupting and replacing is a means of reprogramming your subconscious mind. Eventually, the replacement thoughts will become the “go to” thoughts in the applicable situations.

Use Technique A with the Inner Critic and Worrier; and Technique B with the Reactor and Sleep Depriver.

For the Inner Critic

When you catch yourself thinking something negative about yourself (calling yourself names, disrespecting yourself, or berating yourself), interrupt it.

You can yell (in your mind), “Stop! No!” or, “Enough! I’m in control now.” Then, whatever your negative thought was about yourself, replace it with an opposite or counter thought or an affirmation that begins with “I am.”

For example, if your thought is, “I’m such a loser,” you can replace it with, “I am a Divine Creation of the Universal Spirit. I am a perfect spiritual being learning to master the human experience. I am a being of energy, light, and matter. I am magnificent, brilliant, and beautiful. I love and approve of myself just as I am.”

You can also have a dialogue with yourself with the intention of discrediting the ‘voice’ that created the thought, if you know whose voice it is:

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“Just because so-and-so said I was a loser doesn’t make it true. It was his or her opinion, not a statement of fact. Or maybe they were joking and I took it seriously because I’m insecure.”

If you recognize that you have recurring self-critical thoughts, you can write out or pre-plan your counter thoughts or affirmation so you can be ready. This is the first squatter you should evict, forcefully, if necessary:

  • They rile up the Worrier.
  • The names you call yourself become triggers when called those names by others, so he also maintains the presence of the Reactor.
  • They are often present when you try to fall asleep so he perpetuates the Sleep Depriver.
  • They are a bully and is verbally and emotionally abusive.
  • They are the destroyer of self-esteem. They convince you that you’re not worthy. They’re a liar! In the interest of your self-worth, get them out!

Eliminate your worst critic and you will also diminish the presence of the other three squatters.

Replace them with your new best friends who support, encourage, and enhance your life. This is a presence you want in your mind.

For the Worrier

Prolonged anxiety is mentally, emotionally and physically unhealthy. It can have long-term health implications.

Fear initiates the fight or flight response, creates worry in the mind and creates anxiety in the body.

You should be able to recognize a “worry thought” immediately by how you feel. The physiological signs that the fight or flight response of fear has kicked in are:

  • Increased heart rate, blood pressure, or surge of adrenaline
  • Shallow breathing or breathlessness
  • Muscles tense

Use the above stated method to interrupt any thought of worry and then replace it. But this time you will replace your thoughts of worry with thoughts of gratitude for the outcome you wish for.

If you believe in a higher power, this is the time to engage with it. Here is an example:

Instead of worrying about my loved ones traveling in bad weather, I say the following (I call it a prayer):

“Thank you great spirit for watching over _______. Thank you for watching over his/her car and keeping it safe, road-worthy, and free of maintenance issues without warning. Thank you for surrounding him/her with only safe, conscientious, and alert drivers. And thank you for keeping him/her safe, conscientious, and alert.”

Smile when you think about it or say it aloud, and phrase it in the present tense; both of these will help you feel it and possibly even start to believe it.

If you can visualize what you are praying for, the visualization will enhance the feeling so you will increase the impact in your vibrational field.

Now take a calming breath, slowly in through your nose, and slowly out through the mouth. Take as many as you like!

Replacing fearful thoughts with gratitude will decrease reactionary behavior, taking the steam out of the Reactor.

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For example:

If your child gets lost in the mall, the typical parental reaction that follows the fearful thoughts when finding them is to yell at them.

“I told you never to leave my sight.” This reaction just adds to the child’s fear level from being lost in the first place. Plus, it also teaches them that mom and/or dad will get mad when he or she makes a mistake, which may make them lie to you or not tell you things in the future.

Change those fearful thoughts when they happen:

“Thank You (your choice of Higher Power) for watching over my child and keeping him safe. Thank you for helping me find him soon.”

Then, when you see your child after this thought process, your only reaction will be gratitude, and that seems like a better alternative for all people involved.

For the Trouble-Maker, Reactor or Over-Reactor

Permanently eliminating this squatter will take a bit more attention and reflection after the fact to identify and heal the causes of the triggers; but until then, you can prevent the Reactor from getting out of control by initiating conscious breathing as soon as you recognize his presence.

The Reactor’s thoughts or feelings activate the fight or flight response just like with the Worrier. The physiological signs of his presence will be the same. With a little attention, you should be able to tell the difference between anxiety, anger, frustration, or pain:

  • Increased heart rate and blood pressure; surge of adrenaline
  • Shallow breathing or breathlessness
  • Muscles tension

I’m sure you’ve heard the suggestion to count to ten when you get angry—well, you can make those ten seconds much more productive if you are breathing consciously during that time.

Conscious breathing is as simple as it sounds; just be conscious of your breathing. Pay attention to the air going in and coming out.

Breathe in through your nose:

  • Feel the air entering your nostrils.
  • Feel your lungs filling and expanding.
  • Focus on your belly rising.

Breathe out through your nose:

  • Feel your lungs emptying.
  • Focus on your belly falling.
  • Feel the air exiting your nostrils.

Do this for as long as you like. Leave the situation if you want. This gives the adrenaline time to normalize.

Now you can address the situation with a calmer, more rational perspective and avoid damaging behavior.

One of the troubles this squatter causes is that it adds to the sleep depriver’s issues. By evicting, or at least controlling the Reactor, you will decrease reactionary behavior, which will decrease the need for the rehashing and ruminating that may keep you from falling asleep.

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Master your mind and stop the Reactor from bringing stress to you and your relationships!

For the Sleep Depriver

(They’re made up of the Inner Planner, the Rehasher and the Ruminator, along with the Inner Critic and the Worrier.)

I was plagued with a very common problem: not being able to turn off my mind at bedtime. This inability prevented me from falling asleep and thus, getting a restful and restorative night’s sleep.

Here’s how I mastered my mind and evicted the Sleep Depriver and all his cronies.

  1. I started by focusing on my breathing—paying attention to the rise and fall of my belly—but that didn’t keep the thoughts out for long. (Actually, I now start with checking my at-rest mouth position to keep me from clenching.)
  2. Then I came up with replacement strategy that eliminated uncontrolled thinking—imagining the word in while breathing in and thinking the word out when breathing out. I would (and do) elongate the word to match the length of my breath.

When I catch myself thinking, I shift back to in, out. With this technique, I am still thinking, sort of, but the wheels are no longer spinning out of control. I am in control of my mind and I choose quiet.

From the first time I tried this method I started to yawn after only a few cycles and am usually asleep within ten minutes.

For really difficult nights, I add an increase of attention by holding my eyes in a looking-up position (Closed, of course!). Sometimes I try to look toward my third eye but that really hurts my eyes.

If you have trouble falling asleep because you can’t shut off your mind, I strongly recommend you try this technique. I still use it every night. You can start sleeping better tonight!

You can also use this technique any time you want to:

  • Fall back to sleep if you wake up too soon.
  • Shut down your thinking.
  • Calm your feelings.
  • Simply focus on the present moment. 

The Bottom Line

Your mind is a tool, and like any other tool, it can be used for constructive purposes or for destructive purposes.

You can allow your mind to be occupied by unwanted, undesirable and destructive tenants, or you can choose desirable tenants like peace, gratitude, compassion, love, and joy.

Your mind can become your best friend, your biggest supporter, and someone you can count on to be there and encourage you. The choice is yours!

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Featured photo credit: Priscilla Du Preez via unsplash.com

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