Home Warranties Provide an Added Edge

By John Voket

American Home Shield Helps Ensure Peace of Mind among Buyers and Sellers

With nearly a quarter century of experience in the real estate industry under his belt, real estate professional Dave Abdallah has gone from being a staunch skeptic of home warranties to one of the nation’s top selling advocates of the diverse protection plans.

In fact, Abdallah, with CENTURY 21 Curran and Christie in Dearborn Heights, Mich., recommends that every client obtain at least the first year’s protection through American Home Shield® (AHS). And AHS has something for everyone, with home protection plans that cover major home system components and appliances—ranging from dishwashers to air conditioning to roofing.

“For many years, I went out of my way to convince people not to get a home warranty, as I was not a believer in them,” says Abdallah. However, the tables eventually turned as Abdallah came to realize firsthand the numerous advantages associated with incorporating an AHS home protection plan into a transaction. And he hasn’t looked back since. “For the past 12-15 years, I have been recommending home protection plans to each and every client.”

While Abdallah admits home warranties are typically a hard sell when it comes to new homes, it’s still important to try and get the seller or buyer to invest in a protection plan for at least the first year.

“I’ve lived in new-construction homes, where the presumption is that nothing will be breaking down for 10-15 years. But it happens,” says Abdallah. “A new furnace can break down, or you can run into some type of construction issue. Or you may have a roof, plumbing or electrical problem.”

Abdallah recalls a client who was dead set against adding a home protection plan at first, but eventually agreed to add one for the first year.

“When the furnace went out, American Home Shield was called and the problem was fixed for a grand total of $65,” says Abdallah, “providing the seller with peace of mind. American Home Shield even put my client in a hotel for a day or two while the work was being done.”

Because he is consistent and persistent, Abdallah is able to add AHS plans to as many as half of his buyer contracts. And when it comes to sellers, most are taking advantage of home protection plans as well.

“We automatically ask the seller to provide a home warranty on every sale, and 70-80 percent do,” adds Abdallah, noting that about 50 percent of his buyers typically obtain one.

When it comes to home warranties, Abdallah explains that most people only have a vague idea of what’s involved. “When you’re looking at the monthly payment, it can be less than $1 a day to cover most of the building and appliances every year,” he says. “We believe in insurance for a house, but a lot of mechanicals do break down, so in some ways it’s equally important to homeowners to include a home protection plan as well.”

For more information, please visit www.ahs.com/realestate.

Reprinted with permission from RISMedia. ©2013. All rights reserved.