To Reach Buyers, Sellers Promote Home Warranties


With temperatures warming and the housing market improving, more consumers are out looking at properties. Many of these consumers will be first-time home buyers. As they venture into the home ownership market, these folks will worry about what might go wrong with the big ticket items like plumbing or heating systems. One way to ease their minds and increase sales is to offer a home warranty.

A new study from American Home Shield shows that consumers are keenly interested in homes with a warranty. Covered properties are yielding great sales results:

  • 11 fewer days on the market when compared to homes that do not have a warranty
  • An average sales price of $2,300 more than homes that do not have a warranty

According to American Home Shield, buyers are snapping up covered home after an average listing period of 55.8 days. The price differential between covered and non-covered homes amounts to about 4 times the cost of a home protection plan. The average sales price of a property in this study was about $254, 682.  American Home Shield based its study on the sale of over 24,000 properties across the U.S. They remind consumers that these warranties protect buyers, sellers and agents.

Consumers who are buying second homes or investment properties may be particularly interested in purchasing a home warranty policy. According to Ad-ology Research, these consumers have a higher than average income. Investment property owners are more likely than average to enjoy sports such as golf and boating so advertisements placed in publications that highlight these sports may pay off. Nearly 34% of these consumers also skew much higher than average when it comes to  starting an online search for a product or service after receiving a direct mailing.

AudienceSCAN data is available as part of a subscription to Ad-ology PRO. Media companies can access AudienceSCAN data through the Audience Intelligence Reports in AdMall.

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