As a real estate agent, you know better than anyone that every little detail counts when selling a house. It’s usually in your best interests to find a buyer and complete a deal fast. This means using every advantage. A home warranty is one of the advantages you should be using. But with the amount of bad press these policies are getting, you need to offer your clients a home warranty plan they will definitely trust. In this business, American Home Shield seems to be the best possible choice. This company has been active for over 40 years and it currently has such prevalence, many see it as a default home warranty option.
What Exactly Is AHS and What Services Does It Offer?
American Home Shield (AHS) is a home warranty company that provides all the services one would expect from this kind of business. However, this business is in a unique position on the market. That’s because 42% of this entire market belongs to it (Statista).
Just so you realize how much of an accomplishment this is you need to consider that there are 188 home warranty companies operating in the US today (IBISWorld). Yet nearly half of the 4+ million people who use home warranty services in the country get them from AHS. Its closest competitor is First American, but it only has about 11% of the total market.
AHS offers a wide range of home warranty plans, but limited add-on options. This means that their coverage is rather rigid so you might not be able to find a perfect fit. However, the versatility of available plans gives you some room to work with.
This company works closely with real estate professionals who seek to use a home warranty to add value to a property. They have plans designed specifically for that.
One of the main advantages of AHS is that this company is public. This means that it’s as transparent as a home warranty business gets. Considering that the lack of industry regulations is a major source of problems with these businesses, this openness makes AHS one of the best providers to work with. A public company is more trustworthy by default.
Is American Home Shield the Best Home Warranty Provider?
American Home Shield is definitely one of the best home warranty providers in the US. However, this doesn’t mean that the company is perfect. It does have some issues, with the biggest one being conflicting opinions about the quality of service. Customer reviews of this company are mixed, and there of no shortage of both positive and extremely negative opinions.
On the plus side, this is one of the few home warranty providers accredited with the Better Business Bureau. But bear in mind that the company’s rating there is “B” and over half of the customer reviews on the BBB website are negative.
One of the biggest issues with AHS is the tricky Terms and Conditions in the company’s home warranty contracts. They aren’t scams, but the company definitely uses them to wiggle out from some claims. Note that there is also a one-day limit to filing a claim, which is a major issue on its own.
On the other hand, AHS is a big business with a long and overall good history. It offers emergency services and free 30-day cancellation. It also has an excellent contractor network and is overall very professional in its approach to the business. This means that when the user complies with all the Terms and Conditions, they will be able to resolve their problems quickly and with minimal stress.
That’s exactly the idea AHS promotes in its marketing campaigns. Those campaigns are what helps the business grow despite the increasing competition in the industry. As you can see for yourself, AHS video ads are very compelling. And if you look at more of them, you’ll be able to see that ‘aggressive’ might be a better term to use here.
Should You Buy an AHS Home Warranty Plan?
Aggressive marketing aside, it’s a fact that adding an AHS home warranty plan can help you sell the property faster (about 11 days faster, according to Clark Howard). But it’s also true that this plan will have little-to-none actual value to the home buyer. Therefore, you can thank the aforementioned aggressive marketing campaign, which makes the US consumers believe otherwise.
The exceedingly fast growth of AHS and its already staggering market share prove that those marketing tactics are working. The fact that the company has been around for nearly five decades also helps promote its popularity and ensure it will remain a major player for years to come.
As you are a real estate agent, you need to focus on making the property you work with as appealing as possible. Therefore, you should consider using the benefits associated with a home warranty plan. And to make the best impression, you definitely need to go for the biggest name in the industry, which is American Home Shield.