The following is sponsored, promotional content. This content is not written by and does not necessarily reflect the views of REM.
By now you may have heard about Certified Resale Home, a cost-effective, pre-listing home inspection and warranty offered through FCT in partnership with AmeriSpec Inspection Services to protect consumers purchasing a resale home.
This innovative new service combines a comprehensive, unbiased home inspection conducted before a seller’s home is put on the market with an 18-month warranty from FCT that is transferrable from seller to buyer. The warranty covers important systems and components of the home that may be difficult to assess during the home inspection because of seasonality or accessibility, and often create the most anxiety for home owners, particularly from a financial perspective. The coverage offers a maximum of $20,000 for the repair and/or replacement of the foundation, roof, heating and cooling systems.
The service was successfully piloted last year in the Niagara region and was embraced by local real estate agents and brokers as a valuable service.
For those of you who have your doubts, we have the heard it before and we have the answers!
1. I DON’T NEED IT TO SELL A HOME IN TODAY’S MARKET
- When value all looks the same, commission becomes the issue – differentiate your value proposition so that your services do not become commoditized
- Markets change – build your brand cadence around the service as an early adopter and reap its rewards as the market shifts
- Millennials demand information and transparency
- It is optimized for multiple offers – information transparency and risk mitigation builds trust and confidence by reducing buyer anxiety
- It is good for all the participants and the transaction by taking the ‘high road’ it positions you favourably with clients and enhances lead generation
2. IT IS TOO EXPENSIVE
- $689 plus HST – on a $1M home that is negligible
- It represents less than 2.5% of total sell side commission (assuming a 2.5% split) – but client satisfaction is sky high which = referrals
- Value of getting the best possible offer, quicker vs. ‘other’ spend (staging, photography, ads) – and remember you can pay for CRH, split the cost, have the seller pay or reimburse the seller on closing
3. I CAN SEE WHETHER A HOME HAS ISSUES THAT NEED FIXING, I DON’T NEED CRH
- Your responsibility is not what you did know about the property but what you should have known
- A home inspector can’t see behind walls, may not be able to inspect a roof covered in snow or test an air conditioner in winter
4. NOT ENOUGH COVERAGE FOR ITEMS AND $ AMOUNT
- The Certified Resale Home warranty coverage is focused on ‘blind spots’ in home inspections because they create anxiety for home owners
- These were identified in the consumer research we undertook prior to devising the service
- There is no other service in the Ontario market that provides $20,000 worth of coverage for 18 months
- There are no sub-caps on the 4 core items – if the roof has a leak and the shingles need to be completely replaced coverage room is available to do that
5. THERE ARE OTHER PRODUCTS IN THE MARKET
- These products involve multiple parties – broker and insurer rather than one well-known brand – FCT – been in business for 25 years and paid out hundreds of millions in claims
- Foundation and Roof are not covered – the risk of claims is too great for these competitors
- There is less available coverage – $5,000-10,000 with sub-caps and age limits
- Terms are usually 6-12 months only
- They charge per item service calls
6. I HAVE A HOME INSPECTOR THAT I ALREADY USE FOR ALL OF MY DEALS
- Trust and credibility through impartiality – third party quarterback
- AmeriSpec Inspection Services and FCT are well known brands in the Canadian real estate market
7. MY CLIENTS HAVE HOME INSURANCE ALREADY
- It is complemented by CRH coverage – covers home owner risk gaps
- If the foundation has a leak CRH will address the source of the leak, home insurance will address damage to contents, fixtures, fittings
- Home insurance will not repair or replace a broken down air conditioner or furnace, nor will it cover the cost to repair the roof if a leak occurs
Call 1.855.640.1832 or visit thecertifiedresalehome.ca to find out how Certified Resale Home is a WIN-WIN-WIN for the Realtor, Seller and Buyer.
Add Certified Resale Home to Your Toolkit Today!
- Book a Certified Resale Home with an inspector within AmeriSpec Inspection Services network
- You or the seller can pay; you can split the cost or reimburse the seller on closing
- Report will be delivered and within it will be a link to the warranty coverage document, a summary of the coverage specific to the home as well as a formal Certificate of Warranty
- Review the contents so that you and the seller can either determine what needs to be remedied or you can prepare for known objections and position accordingly – take control of the information to get out in front of issues for the client
- If items are remedied have proof available (could be the paid receipt, scope of work, etc.) to view with the above report, that way interested buyers have further confidence in the listing