Property stylists don’t improve a home’s construction integrity, but first class home warranty insurance does. Buyers are on the lookout for paper mâché, weak insurance, because it says more about the vendor’s integrity and care, than a glossy sales board. Melbourne’s owner builders, hold a valuable strength in toughening markets, when they proudly offer an insurance underwritten by the State Government of Victoria.
Selling an owner built home in de-accelerating price market adds extra definition and reliance on meaningfully, practical and credible construction warranties. During 2006, 2007 and 2008 GFC periods, Sam Greco Principal Qtrust Insurances, recalls how home warranties were used extensively as price deflators, by conveyancers and Real Estate agents, acting on behalf of purchasers. Buyers once again now hold the upper hand in negotiating price and terms, often pressuring vendors with little in their bargaining tool kit. In tighter price markets, purchasers take the upper hand, and squeeze and leverage every dollar from of the final price. Vendor’s wishes to maximise their investments commensurately require tools to fend off heavy discounting, and therefore quality in the home construction is a key fighter. Unfortunately reality is, behind brickwork, cladding, plaster, paint and flooring, structural quality is not easily visible. Plumbing, framing, wiring and waterproofing are not visible, hence warranties become the purchaser’s safeguards.
Home warranty insurance cost are once off, pay once only. They are calculated on a formula of value of construction costs, and home warranty insurance period remaining; generally 6.5years from date of certificate of occupancy or final inspection. Vendors should remain alert for the BIG RIP OFF, when submitting their home warranty request for quote or insurance. Unfortunately and to the unaware, most Melbourne insurance brokers continue to sting sales commissions on these classes of insurance. Qtrust does not attract nor earn sales commissions on any Home Warranty Insurance, so our advice and service levels is about the owner builder exclusively and non-other, and the owner builder makes the savings.
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This post was written by Technical Underwriting Centre