Knowing the Ins and Outs of Your Home Warranty

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I get a lot of questions regarding home warranties and home warranty companies. What you need to know, first and foremost, is that when your home warranty has been given to you by the seller, we as the buying side get to pick who we want to work with. I normally pick a specific company with a good track record so we can get you the best coverage possible.

After a year goes by and you’re coming back for renewal, there are two key things you need to remember. The first is that you will receive what we call the “brochure rates.” These rates are provided by the companies that we get solicited by to be able to use their home warranties. The brochure rates are going to be the best rates these companies have, and typically when you renew they will give you a higher rate.

The second is to examine at this point whether or not you have the coverage you really need. If you want to add some additional coverages, you can certainly do it. It’s also important to note that when you finish buying a home, you are given a window of 30 to 90 days to add these additional coverages at a cheaper expense.

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Read the brochures so you can get the best possible home warranty.

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So, make sure you read the brochures. All the information you need to accomplish these things is going to be in them. Also, don’t forget to look on the dates of the brochures, because they change all the time. If you have any questions, call them up or call me up and I’ll talk with my account rep about what things are changing in the industry. There are constant fluctuations within the EPA, therefore the home warranty companies have to make changes due to their own rules and restrictions. Not checking this regularly has led clients of mine to experience things like appliance malfunction and inadequate coverage.

If you have a home that’s 10 to 15 years older, you need to keep a warranty on it because your homeowners insurance will not pay for things like a furnace going out. Insurance companies consider that a maintenance issue and expect home warranties to cover it.

Our doors and our phones are always open to answer any questions you may have regarding home warranties. If you’re looking to buy or sell, please go ahead and call or email me for a free consultation.

Phoenix Buyers and Sellers Shouldn’t Trust Zestimates

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A lot of clients come to us and tell us what Zillow’s Zestimate offered as a value on a home, saying this and that. What most people don’t know is that Zillow is only accurate about 7% of the time.

If I was only accurate 7% of the time, I wouldn’t be in business! The CEO of Zillow recently sold him home, and his home’s Zestimate was off by 40%!

It’s important to understand how Zillow pulls its information. It’s an algorithm that Zillow came up with, and is derived from tax records from the government. These figures are very inaccurate. Zillow will also clump homes together with similar subdivisions, but oftentimes the values are very different even in these small neighborhoods. Zillow clumps your home and its updated kitchen and bathrooms in with a “similar” home down the street that is really bare bones basic.

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The CEO of Zillow recently sold him home, and his home’s Zestimate was off by 40%!

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Then, an average is based off of that, so both numbers are going to be off. In Phoenix alone, they are off 20%, and that’s huge. The big thing to remember is that Zillow can’t come into your home and see changes like granite countertops or an added bedroom.

If you’re interested in finding the true market value of your home, please feel to reach out to us. We’d love to help!