Bob Hamrick, chairman and CEO of Coldwell Banker Premier Realty (CBPR) in Las Vegas, has spent over 40 years in the real estate industry. Throughout his career, Hamrick has experienced a range of market conditions, worked with both buyers and sellers, and learned about the true value of a home warranty.
When he and his wife, Molly, purchased CBPR in 1998, it didn’t take long to see that the brokerage’s longstanding relationship with American Home Shield (AHS) was the right fit.
According to Hamrick, home warranties offer real value for both buyers and sellers, whether it be budget protection for future issues or a negotiation tool.
“Home warranties are referenced in our listing presentation because we believe they add value, causing a seller’s home to stand out and be more competitive in the market,” explains Hamrick. “In a balanced market, where you have equilibrium between buyers and sellers, a home warranty can stand out as being the difference that would cause a buyer to purchase one home versus another.”
Unfortunately, today’s market is unbalanced, making home warranties a bit harder to negotiate within transactions. With buyers presenting offers over the listing price, it becomes, as Hamrick explains, “lost in the negotiation or lost in the dollars that end up being negotiated away between the buyer and seller.” He does, however, believe that this is even more of a reason for buyers to invest in a home warranty, especially considering the fact that more often than not, something inevitably goes wrong after the purchase.
“If I had the opportunity to tell every single one of our buyers, I would tell them that this is potentially the reason why you should get a warranty, because you don’t want any of those surprises,” says Hamrick.
On the other hand, if sellers offer a home warranty in their listing, it can help their property stand out. Hamrick also offers his sellers the opportunity to purchase coverage from American Home Shield during the listing period, offering additional protection during this portion of the transaction process.
“This is a unique feature that we offer, providing sellers the comfort of knowing that during the time they are marketing their home, if anything goes wrong with a covered item, it has the potential to be fixed,” explains Hamrick.
As demographics, technology and preferences continue to change, so do the wants and needs of buyers and sellers. Though Hamrick credits the human connection offered by American Home Shield, he also highlights their stellar automation. And while filling out a form online may be perceived as negative, Hamrick believes the company does it right.
“That’s where the world is—online,” concludes Hamrick. “There’s a good combination of human connection and online automation. There’s a process that, if you follow it, it’s actually pretty good, pretty smooth and pretty easy. If problems arise, there are people to talk to.”
For more information, please visit www.ahs.com/realestate.
