Kern County Real Estate Review

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Adlai: [00:00:40] Good morning and welcome to the Kern County Real Estate Review on 1560 Am, 97.7 FM KNBR and streaming live on CNN.com, we are proud to bring you the most trusted real estate advice and insights with the one and only Laurie McCarty. As Kern County's most listened to realtor, Laurie McCarty has been successfully selling real estate for over three decades, helping over 11,000 families meet their real estate needs. With her vast experience and knowledge, Laurie is consistently ranked as one of the best in the business nationwide. But Laurie doesn't work alone. She heads up the McCarty Group, a team of dedicated professionals who are well known for their knowledge, professionalism and unwavering commitment to their clients. Whether you're buying or selling, the McCarty Group is your partner for a smooth and stress free experience. As one of the most successful real estate teams in Kern County, the McCarty Group has helped countless families achieve their real estate goals. Whether you're looking to buy or sell, you can trust the McCarty Group to provide you with expert guidance and a personalized attention every step of the way. So if you're thinking of buying or selling, look no further than the McCarty Group. With their unparalleled knowledge and expertise, they can help you get the most value for your investment. To learn more, visit them online at the McCarty group.com or call 661665. Sold (661) 665-7653. To speak with one of their team members today and a good morning to you Laurie Good.

Laurie McCarty: [00:02:11] Morning Adlai How are you doing this morning?

Adlai: [00:02:14] I'm doing excellent. The weird thing is I never got sunburned when I was younger, but I do now. Oh, do you remember? Spf ten was like a lot.

Laurie McCarty: [00:02:23] I do when I when I was younger. Right.

Adlai: [00:02:25] We went to the store and it's like SPF 100 and something.

Laurie McCarty: [00:02:29] Uh huh, I know. Oh, my minimum nowadays is like 30, right?

Adlai: [00:02:33] I think so. Yeah. You got to have at least have it. There's no point. Yeah. Yeah. But growing up, though, you were in Texas. I was in Southern California. We rarely even wore sun protection.

Laurie McCarty: [00:02:44] Like what? Why do you want that? That's crazy. But I have the wrinkles now to prove it.

Adlai: [00:02:48] But yeah, and I get. I get, like, so nervous going out in the sun now. I'm like, don't do it, Don't do it.

Laurie McCarty: [00:02:52] But I know.

Adlai: [00:02:53] But you got to enjoy it while it's there and getting some water. So we're trying to do that, you know, what are you doing? So any big plans for the weekend?

Laurie McCarty: [00:03:00] Well, you know, my weekend's actually been quite eventful already. I had a small incident at home that made me appreciate the importance of having a safety net in place. You see, my dishwasher suddenly decided to take an extended vacation, leaving me with a sink full of dirty dishes.

Adlai: [00:03:21] Wait, is your dishwasher named Bob?

Laurie McCarty: [00:03:23] No, no, no. The actual dishwasher. Oh, the mechanical piece. Right. But luckily we have a home warranty in place. And let me tell you, it made the whole process incredibly easy. I simply called the home warranty company, and within no time they had a repair company scheduled to come out and fix my dishwasher. Not only did it save me the hassle of finding a repair company, but it also was far more cost effective. You know, paying the callout fee with my home warranty ended up being much cheaper than if I had paid to have an appliance repair company come out directly. You know, I think it's actually very fortuitous that we have a special guest today who is going to be able to shed some light on the benefits and coverage that are provided by home warranties. But before we introduce our special guest, I want to talk about another real estate topic. You know, in today's real estate market, mortgage rates have become a pressing concern for prospective home buyers. The Federal Reserve's efforts to combat inflation have resulted in a series of interest rate hikes that have left borrowers searching for strategies to try to navigate these elevated borrowing costs. One option that has really gained some prominence is the concept of assumable mortgages. So I thought, why not explore the concept of assumable mortgages this morning? Let's talk about the mechanics of them and how they can offer an appealing solution for both buyers seeking to benefit from lower interest rates in this high interest rate environment.

Laurie McCarty: [00:05:07] And for sellers looking to capitalize on top dollar for their home. So first off, let's begin by understanding assumable mortgages. You know, an assumable mortgage is going to refer to a financing arrangement that enables a buyer to assume the existing mortgage terms of a seller when they're purchasing their property. In other words, the buyer is going to take over the seller's mortgage loan, assuming responsibility for the remaining balance, and they're going to continue. You to make payments according to the original terms of the loan. You know, in recent times, we've seen a significant climb in mortgage interest rates due to the Federal Reserve's efforts to control inflation. However, in this high rate environment, assumable mortgages can really offer an attractive proposition for buyers by assuming the seller's lower interest rate mortgages. Buyers can potentially secure far more favorable financing compared to applying for a new loan at the prevailing higher rates. They're actually quite a few benefits for buyers that are able to find a home that they love that has an assumable mortgage. First and primary, of course, is that advantage to obtain a lower interest rate. So if the seller's mortgage has a rate that's significantly lower than the current market interest rate average, then not only will the buyer experience a monthly payment savings, but also that long term savings over the life of the loan can be quite substantial when you calculate the interest rate savings.

Laurie McCarty: [00:06:53] Now, secondly, when you're assuming a loan, there are reduced closing costs and most buyers aren't aware of this. But assumable mortgages often come with lower closing costs since the buyers are going to avoid the expenses associated with originating a new mortgage. So this can provide you with additional savings during the home buying process. Now, additionally, buyers with less than perfect credit or limited financial history may find it easier to qualify for an assumable mortgage, as lenders typically are going to assess the buyer's ability to assume the existing loan rather than applying stringent underwriting standards for a new mortgage. Furthermore, when you look at recent appreciation rates, the buyer generally has a greater stake or more equity in the home than a minimal down payment borrower. So the equity in the property also becomes the security for the lender. Now, while assumable mortgages offer appealing advantages, it's really essential to consider certain factors. First and foremost is going to be the qualification criteria. Buyers will have to meet the lender's eligibility criteria to assume the mortgage. This typically is going to involve demonstrating sufficient income, credit worthiness and fulfilling any specific requirements that are going to be outlined by the lender. Also, there may be some assumption fees that certain lenders are going to charge for assuming the mortgage. And I think it's really important for buyers to understand and account for those costs that are going to be associated with the assumption before they proceed with that loan.

Laurie McCarty: [00:08:46] Next up is going to be seller's liability. So in an assumable mortgage, depending on that product, the seller may still retain some liability for the loan. So sellers should be very careful to review the terms and the obligations and be sure to seek legal advice if necessary to make sure that they're released from any future responsibility. In a high interest rate environment, assumable mortgages can present an intriguing solution for buyers that are seeking relief from elevated borrowing costs by assuming a seller's lower interest rate mortgage. Buyers can benefit from potentially significant savings and streamlined financing. However, as I said, it's crucial for both buyers and sellers to thoroughly assess the terms and conditions of an assumable mortgage before proceeding. Consulting with a mortgage professional can provide valuable guidance to navigate this alternative financing option successfully. And if you need to know who to call, give us a call and we'll set you on the right course. So that's going to wrap up our first segment. You know, time really flies when we're talking real estate, doesn't it? When we come back. Getrillioneady to meet our special guest, Sarah Tucker from Home Warranty of America. You're tuned in to the Kern County Real Estate Review with your host, Laurie McCarty of the McCarty Group at Coldwell Banker preferred Realtors broadcasting here on 1560 Am, 97.7 FM, KNBR and streaming live at Cars.com. Don't wander off too far because we'll be back in a jiffy.

Adlai: [00:10:38] Stay tuned. To reach Laurie. You can call her or her team anytime at 661665. Sold. That's (661) 665-7653. Or you can go to her website at the McCarty Group.com where you can tour all the properties available in Kern County from the comfort of your couch. Request an in-person tour, find out the value of your home and see the McCarty Group's success stories consistently ranked in the top ten agents in North America for Coldwell Banker and on the Wall Street Journal's top 100 agents, She is truly an expert in her field. Her desire, as well as that of her team, is to not only achieve their clients goals but to exceed their expectations. So let them do just that. And we'll be right back with the Kern County Real Estate Review here on KNBR.

Sebastian Gorka: [00:11:39] Hi. Sebastian Gorka here with a hot real estate tip for you. Stay on top of the hottest trends every weekend when you tune in to the Kern County Real Estate Review with Laurie McCarty, Saturdays at 11 a.m. and Sundays at 8 a.m. on KNBR.

Adlai: [00:12:08] We're back this morning with Laurie McCarty of the McCarty Group on the Kern County Real Estate Review here on 1560 Am, 97.7 FM, KNBR and streaming live on CNN.com. And so, Laurie, are you ready to introduce our guest?

Laurie McCarty: [00:12:23] Absolutely. You know, as I mentioned at the beginning of the show, I was fortunate enough to have a home warranty on my home to handle my dishwasher that decided to go on sabbatical. And today, we're fortunate to have a fantastic representative and a previous guest, Sarah Tucker of Home Warranty of America. So good morning, Sarah.

Sarah Tucker: [00:12:45] Good morning, Laurie.

Laurie McCarty: [00:12:46] How are you doing this morning?

Sarah Tucker: [00:12:47] I'm doing wonderful. Thank you for having me.

Laurie McCarty: [00:12:49] You bet. Thanks so much of for being on the show today. For those who don't remember, you help our audience get to know you a little bit and tell us a bit about yourself.

Sarah Tucker: [00:13:00] Okay? My name is Sarah Tucker. I have been a home warranty rep for H.w.a Home Warranty of America for the past six years. I've been married to my husband, James, for four years. I have a son, Zachary, that's 32, and my daughter Samantha is 28. And the highlight of my life right now is my granddaughter, 15 months old, and she's just the light of my life.

Laurie McCarty: [00:13:26] Oh, that's wonderful. So tell everyone what a home warranty is and how it differs from homeowners insurance.

Sarah Tucker: [00:13:35] Okay, so a home warranty is designed to cover breakdowns of systems or appliances due to age or normal wear and tear of a home. You pay a small trade call fee to a contractor and at the time of service and they diagnose your problem, turn it in, and we do the repairs that are needed. It's home warranty is not required by a bank or a lender versus a homeowner's insurance, which is required by your bank or your lender. You usually have to meet deductibles before expenses are covered, and it usually covers theft, fire, structural damage or natural disasters.

Laurie McCarty: [00:14:13] Okay, great. So tell us, what are some of the key benefits of having a home warranty?

Sarah Tucker: [00:14:18] Well, it's designed to offset the cost of expensive home repairs to your major systems and breakdowns. It offsets major costs. There will be some out of pocket expenses, but for an AC unit that that can really be costly. And so it's designed to cover those major costs from normal wear and tear or or due to age.

Laurie McCarty: [00:14:39] Okay. So can you explain the coverage that's provided by a typical home warranty plan? Sure.

Sarah Tucker: [00:14:47] Okay. Well, we offer a couple of plans, basic, and then we have our platinum plan. So I'll go over the platinum plan because the basic is pretty basic what it covers. If you can remember the acronym Peach. Okay. Plumbing, electrical appliance, cooling and heating. Okay. Now it covers other items, too. You can they're fully customizable. Our plans. So but those are the main the main systems that it covers.

Laurie McCarty: [00:15:13] Okay. I usually refer to a home warranty as covering the appliance and equipment systems in a home. Is that accurate? For the most part.

Sarah Tucker: [00:15:23] That is accurate. It's the mechanical workings of your systems. So it's going to be your like the main blower of your AC, your your mechanical part of your appliance that's broken down. Typically, it's they do cover the extra little springs and little things included in the breakdown of the appliance. But mainly it's the mechanical workings, the most expensive part of a repair of an appliance.

Laurie McCarty: [00:15:48] Okay. And are there. Well, I know there are. So I guess I should ask, what are the limitations or the exclusions that homeowners should be aware of when it comes to.

Sarah Tucker: [00:16:00] Their different for each for each system? So pretty much it's not going to be the cosmetic part of it. It's going to be the mechanical part, the expensive part, let's say like on your pool pump, it's going to be the pump. Anything above ground, it's not going to be anything in the water like any any crack in your in your plaster. It's not going to be any of that. It's going to be the mechanical workings. Okay. The motor of your dishwasher, the heating element in your stove, those type of things, your AC unit is going to be your blower, your condenser, the major expensive parts of that.

Laurie McCarty: [00:16:40] Okay. So it's not going to be the knob on my stove. It's going to be the.

Sarah Tucker: [00:16:44] Exactly. Yes. Okay.

Laurie McCarty: [00:16:46] It's going to be the heating element.

Sarah Tucker: [00:16:47] Exactly. Exactly. Now, we do cover in the as far as plumbing, like your faucets and the platinum plan that's covered your faucets, your showerheads. So that type of cosmetic. Yeah, you need that part for your shower. You need that part for your for your faucet without.

Laurie McCarty: [00:17:05] The without the faucet itself. Get the water out. Right, right, right, right. Or you do. But I guess it's very messy. Right?

Sarah Tucker: [00:17:12] Correct. Correct. And as far as plumbing, we are one of the only home warranty cover companies that cover unknown pre-existing conditions.

Laurie McCarty: [00:17:21] Oh, wow.

Sarah Tucker: [00:17:22] Yes. So what that means is if you have a plumbing, a pipe running through your wall that you're not able to inspect, that's an unknown that something's unknown. You cannot check for cracks, leaks in a in a home inspection. You cannot check for that. So in those instances, we would cover that.

Laurie McCarty: [00:17:40] Okay, great. So how does the claims process work with a home warranty? Are there any specific requirements or steps that homeowners need to follow?

Sarah Tucker: [00:17:52] Actually, no. It's very simple. So with our company, we're we're very up to date digitally. We have an app that you can download. Wow. Yes, we have an app. You find it in your in the play store or on your on your your wherever you download your your apps. And it's it's a portal. It's a portal for the realtor, it's a portal for the homeowner and it's a portal for buyers sellers both you can file your claim directly through there all you need your policy number. You can track your claim. That way you can accept your contractors appointments that way, and then you track the whole claims process through the app. You can do that, or you can just call it in simple with the eight, eight, eight, eight number that we have.

Laurie McCarty: [00:18:36] Wow, that's amazing. So now you mentioned that there are different types of home warranty plans. Like you said, you have the basic you have the platinum. Is there another type of plan as well?

Sarah Tucker: [00:18:49] Well, with our two plans, we have two transactional plans. So what that means is a transactional plan is a plan that is placed on a home during the sale through escrow. We have a gold plan and we have a platinum. Like I said, gold is very basic. It covers your basic needs and note that it does not include your AC. Okay. Okay. 325 real basic platinum plan is 450 For just a little bit more, you'll get your AC coverage, you'll get your premium coverage and your orange plus coverage included in that, which which ups your coverage by. It covers code violations for your permits for two $250 of co coverage. It increases your professional series appliances by $22,500. Okay. It increases the replacement for your toilets for up to $600 more. And it has the removal of your defective products. No one wants to get left with a dirty old toilet, you know, but with your basic plan that that is not included. It also with your premium coverage, it covers the water heater, sediment buildup, your fixtures, faucets and shower heads. What I was mentioning before and 24, 25 more items that are included in that. Wow. But with those two plans, you also have optional coverages to totally customize either plan that you wish. So you could if you just want to get the gold and add on the AC, you can still do that if you have a pool and you still want gold or you want platinum, you can add on the pool coverage for $150 more. Okay.

Laurie McCarty: [00:20:26] Yeah, great.

Sarah Tucker: [00:20:27] And then what? We also have an after plan. What we were talking about earlier, the after plan is for somebody already residing in their home that's been not in a transaction within the last 60 days. Okay. So you could live in your home ten years, but yet you can still get a real estate coverage, a home warranty for the same price as if you just bought your home, which is a lot more reduced price than going a direct to consumer.

Laurie McCarty: [00:20:59] Okay. Yeah, because correct me if I'm wrong, either by using your realtor as a referral or or. Well, that would be generally the way or your lender is a referral person. You are getting a reduced rate on that home warranty rather than just going direct to home warranty of America's website, correct? Exactly. So what you're saying is this after program for somebody who has not been in a transaction for 60 days or more, maybe they've lived in their home for two, three, ten years, you now have this program available that lets them have the same type of coverage, but at reduced rates.

Sarah Tucker: [00:21:49] Yes, they have the same benefit of transactional home warranty cost. And you also get the 13 months of home coverage.

Laurie McCarty: [00:21:57] And that's something I wanted to point out. One of the reasons that I love working with you is because it's not just a standard 12 month or one year. Plan. It's a 13 month plan, which I don't know about you folks, but for me, just having that one extra month makes all the difference in the world. Because it seems like when that year is up, all of a sudden I'm like, scrambling to. To think about renewing and all that sort of thing. This just gives me one more month of peace of mind as I take care of renewing things. Correct.

Sarah Tucker: [00:22:35] And, you know, it never fails. Something will will break down. Right? In that 13 months, you know, it never fails. That extra month sometimes is a saving grace.

Laurie McCarty: [00:22:44] Yes, it really is. Adele, a lot of information that Sarah shared with us. Questions that you have.

Adlai: [00:22:52] Yeah, I was thinking about, like, for like an investment property. Can you still get one of these?

Sarah Tucker: [00:22:58] Most definitely. Oh, yes, most definitely. Multi flats investment properties we can cover for up to four units for four plexes. Yes. Okay.

Adlai: [00:23:12] Okay, great.

Sarah Tucker: [00:23:13] Well, and.

Laurie McCarty: [00:23:14] I think for a landlord that this could be a really great. Program for them to use for particularly for your mom or pop investor or landlord. Don't call me when something breaks. Call the home warranty company. Pay the per trade call deductible. Let me know. Take that off of your rent next month with the receipt and we'll get the issue taken care of immediately. That allows the tenant to make sure they get speedy service and it takes the hassle out of the investors realm. Right?

Adlai: [00:24:06] I like that. So they can call directly.

Sarah Tucker: [00:24:08] They can. They'll directly as long as their name is noted into the in the plan when it's ordered. Just yes my tenant has the ability to call and make a claim when needed. Yes, that.

Adlai: [00:24:19] Is. I like it. That's amazing. Right on. All right.

Laurie McCarty: [00:24:22] But that keep that in mind for you, right?

Adlai: [00:24:25] Yes. Yes.

Sarah Tucker: [00:24:26] I love it. Yeah.

Laurie McCarty: [00:24:27] That might simplify some of those, you know, 2 a.m. calls like, hey, like this isn't working for me, right?

Adlai: [00:24:33] I like that. Don't call me. I'm in vacation in Hawaii. Yes, Thank you.

Laurie McCarty: [00:24:39] You bet. Well, that has been a lot of great information so far, Sarah. I think it's a perfect place for us to take another break. We'll be right back. You're listening to the Kern County Real Estate Review with Laurie McCarty here on 1560 Am, 97.7 FM and Kcrw and streaming live on. We'll be right back.

Adlai: [00:25:17] Hey, you confused about real estate?

Speaker6: [00:25:19] Sean Hannity here. And I can tell you, as an active real estate investor, well, just like the stock market, it can go up one day and down the next. Home values and sales, they fluctuate on a dime. Now, even though I bought and sold homes for years all across this great country, one thing I will always do is partner with a sharp real estate agent that truly studies local and national market trends, that knows the real value of homes and most importantly, knows how to generate demand regardless of the market. And the good news is you have a truly amazing agent right in your backyard. I'm talking about Laurie McCarthy of Coldwell Banker. She has an amazing team working for her that doesn't miss a single detail. Her system is so bulletproof all she can create demand for your home at a deadline that you agree to or she will buy it herself. Now, real estate doesn't have to be frustrating or scary. Call Laurie McCarthy today at 665 Soul. That's 665 sold online the McCarty group.com That's the McCarty Group.com go there and you can start packing.

Adlai: [00:26:31] You're listening to KNBR 1560 Am, 97.7 FM and streaming live on CNN.com. And we're back this morning with the Kern County Real Estate Review, featuring our host Laurie McCarty of the McCarty Group. For all your real estate questions, call Laurie at 661665. Sold. That's (661) 665-7653. Or go online to the McCarty Group.com. You can also follow Laurie on social media for Facebook. Follow her at the McCarty Group or on Instagram at Laurie underscore McCarty And to keep up with all the real estate news in Kern County you can follow this show on Facebook and Instagram at the Kern County Real Estate Review. There you can also submit questions you'd like Laurie to answer on air or suggest topics you'd like her to cover on Saturday mornings. And this morning, we are talking with Sarah Tucker of Home Warranty of America. Now, before the break, Laurie was asking Sarah about all the basics with a home warranty. And Sarah, let's say someone doesn't have a home warranty and something big goes wrong. Can they just call you guys up, get a home warranty and have home warranty of America fit the bill?

Sarah Tucker: [00:27:39] Oh, that would be great if you could, but that's likely not going to happen. No, no. Actually, everything needs to be in working order when the home warranty is placed. That's just like getting into a car accident and then expecting without insurance and then expecting to get insurance and have it covered. Yeah, that would be a perfect world, wouldn't it? Okay. Yeah.

Laurie McCarty: [00:28:02] And so in that vein, let's let's say that the buyer doesn't have a home inspection when they purchase the home. And is that a requirement for the home warranty to be in place or is there a waiting period if they don't?

Sarah Tucker: [00:28:25] Actually, no, it is not a requirement. That's surprising. Yes, we encourage that because you would really need to know the ins and outs of your home. And I know the the realtor always encourages that. We do. Yes. But sometimes people just they just don't want to do it right? No, you can still have a home warranty. You can place an order on it. Like I said, everything needs to be all your systems need to be in working order. At the time the home warranty is placed, you are required to maintain your system, especially your AC, change your filters, service your AC keeping, Maintaining your systems is required to have the home warranty, but a home inspection is not required.

Laurie McCarty: [00:29:08] And I'm going to say for for folks out there who are thinking and scheming, I'm pretty sure that your repair people could ascertain if that heating and cooling system had been operational recently or if it had been months or years since it had worked.

Sarah Tucker: [00:29:33] Definitely. Most definitely.

Laurie McCarty: [00:29:34] So please don't think that you can buy a home where the AC is not working and then go ahead and call and and assume that the home warranty company is going to fix it.

Sarah Tucker: [00:29:46] That's where your home inspection report comes in. Yes. So we have we have licensed contractors. They they're all licensed and vetted. They come and diagnose. Once you make your claim, we send a contractor out. They diagnose the issue. Of course, they know if it's been in working order or if it's a preexisting condition. We do not cover a pre-existing condition for something that could be repaired during the the inspection period of your home prior to you purchasing it. So that's where the home inspection report comes in because we lean back on if you disagree with the diagnosis of the contractor, we lean back on that home inspection report to say, well, it was broken down, but we fixed it during the escrow and here's the receipt. It has been fixed and it was in working order. So that is like double coverage for you. So always get your home inspection report. Is it required? No. So if you don't have that home inspection report, what happens is we go solely off the diagnosis of the contractor and that's all we have. He's our eyes and ears. Yes. Right.

Laurie McCarty: [00:30:53] Yes. Okay. Share with us, if you can, some examples of situations where a home warranty has provided significant value to the homeowners.

Sarah Tucker: [00:31:03] Oh, wow. Well, we've been through an experience, Laurie. Yes, we have. We have. With the. Okay, so coverage for your AC, that's your biggest expense. It is. And we cover 5000 for the Hvac is a cap on that. But also the Hvac covers your heating system. So we can also pull in the heating system coverage. And I believe that's another 2000 coverage on top of that. And then there's also some added $50 add ons. On, which I always encourage. If you have an older AC unit that's older than, let's say the last five years, even that $50 sear r for ten modification add on will cover the modifications needed that aren't covered in just the regular coverage for to bring your AC unit if it's older up to the EPA standards of today because they've recently raised the standards, the EPA standards. So if there are modifications that need to be done to your system to bring it up before we can even repair it, then that'll give you an extra $1,000 of coverage. So we've we've paid out $7,500 on an AC unit that was just old. It was just old and it was just time for it to be replaced, Right.

Laurie McCarty: [00:32:18] It just quit working.

Sarah Tucker: [00:32:19] It just quit working. Nothing on nothing on lifespan. Exactly. Yes.

Laurie McCarty: [00:32:24] So great. So when a homeowner is or a to be homeowner is considering choosing a home warranty provider, what are some of the things you think they should consider?

Sarah Tucker: [00:32:41] Well, read the reviews. Read the reviews. Most home warranty companies are pretty much alike. We offer 13 months over 12 months on some. We have we have fully customizable plans. I'm not sure you can do that with other home warranties. We have one of the lower lowest trade call fees, which is $75. Most of them are 100 or $150 out of pocket. So that's, you know, some of the good points to look for.

Laurie McCarty: [00:33:12] Plus, you get to work with Sarah, plus.

Sarah Tucker: [00:33:14] You get to work with me. And one thing about that is, Laurie, you know, I always answer my phone. I do. I always answer my phone. And it's like a lifeline for people if they're kind of stuck in the claims system and they think that, you know, something needs to be done, they reach out to me. I can always escalate it to my escalation team. Right? And that's that that's the perks of working with me. It is.

Laurie McCarty: [00:33:36] I will tell you, there have been more than one occasion where and and don't get me wrong, home Warranty of America does a fabulous job handling the claims. But there have been a couple of times that I have felt like the clients needed a little handholding. And Sarah has been amazing at reaching out to the claims department. She has gone that extra mile and it has really made all the difference in the world, and I have really appreciated that. So thank.

Sarah Tucker: [00:34:08] You. Thank you.

Laurie McCarty: [00:34:11] Um, so and I would also encourage you to read the reviews. I think that when you are looking, as she said at that 13 month plan, I also think when you as a home buyer are looking at paying $75 for a trade call rather than 100 or $150 per occurrence, it makes a big difference. Um, so anyway, those are my $0.02. So let's talk about the cost of a home warranty versus the potential savings that it offers a buyer in terms of the repairs and replacements, right? Because that initial cost, if you if you look at the 450 plus, if you add on that extra 50 for the sear, um, so you're looking at at $500 plus $75 for a trade call. Right, right. Um, how does that compare to your average repair or replacement cost?

Sarah Tucker: [00:35:30] Well, you know, it's kind of scary when you move into a home and, you know, you're excited about this new home and then all of a sudden your AC breaks down. You've just you've just soaked in a lot of money on a down payment. You've you've put this is one of the largest purchases you're ever most people are ever going to make. And then a big system breakdown, you're like, where am I going to get this money? So for $450 for 13 months, you have peace of mind of knowing that there may be some out of pocket expense, but at least I have 5000 guaranteed coverage on my AC. Right. And it's a total actually of $15,000 in aggregate for the total coverage of a home warranty. So is that.

Laurie McCarty: [00:36:10] Per year or is that the life of the plan?

Sarah Tucker: [00:36:13] That's the 13 months. Okay. Yes. Okay. Yes. Yes.

Laurie McCarty: [00:36:17] So if they renew at the end of that 13 months, if they've used 5000 during that first 13 months, does do they still have another 15,000 or do they only have 10,000?

Sarah Tucker: [00:36:30] We knew it's going to be 15,000. Wow. That's wonderful. Yes. Yes. Okay. So you're thinking it could possibly save you $15,000 for that $450?

Laurie McCarty: [00:36:40] That's amazing. Yeah. And and to give you an idea, folks, I just had somebody who had to have a air conditioning. And this is a, um. A repair that they are doing, not a replacement. $3,200.

Sarah Tucker: [00:37:02] Exactly.

Laurie McCarty: [00:37:02] Okay. So golly. Wow.

Sarah Tucker: [00:37:06] Yeah, right. Big difference. Like I said, there are some out-of-pocket expense. You know, it's not covered. It doesn't cover everything that goes wrong in your home. It's there to offset the cost of a major expense. And so I think a lot of people get confused with that because their realtor really doesn't explain that to them. That is there to offset the cost. You know, it's there to help you with the major expenses. So you're not all out of pocket.

Laurie McCarty: [00:37:31] Well, and correct me if I'm wrong, if if you pay the trade fee, the trade call fee, if they have to repair that dishwasher, they repair it. If it is not repairable and must be replaced, they replace it. And again, all you're paying is that $75 trade fee.

Sarah Tucker: [00:37:54] Yes. Up to the cap. To the cap that it's covered. Yes, that's exactly right.

Laurie McCarty: [00:37:58] And if you let's let's say that I don't know what the cap is for the dishwasher. Maybe you.

Sarah Tucker: [00:38:04] Do. Well, it's total all your appliances would be 5000. Okay.

Laurie McCarty: [00:38:08] So let's say that the dishwasher is I don't know what is an average dishwasher these days?

Sarah Tucker: [00:38:15] $700. Okay.

Laurie McCarty: [00:38:16] So let's say that you're like, okay, that's great, but I want an upgraded dishwasher, I want stainless, I want whatever.

Sarah Tucker: [00:38:25] Well, what we do and we we match, we replace with like, like with like product now so what, what we would do in that instance, if you want a different model, we would just cash you out and pay you that amount and then you go buy your own. Okay, perfect.

Laurie McCarty: [00:38:41] So that lets you then begin that process of remodeling that kitchen to upgrade those those appliances.

Sarah Tucker: [00:38:49] Exactly.

Laurie McCarty: [00:38:50] Which is fantastic. So and I'm sure you have one of these, but I'm just wondering, is there a story of or an example of someone who opted to waive a home warranty and ended up regretting that decision?

Sarah Tucker: [00:39:06] Oh, yes. I get so many calls, Laurie. They've decided not to get the home warranty. They just don't they just don't want to spend that extra money. And then nobody we have some agents that like to to purchase it for their their clients, but in some agents don't. So they're offered that at the close of escrow they choose not to do it and then never fails. The day after, a week after close, Murphy's Law. It's Murphy's Law. Yeah. The AC breaks down and then they're scrambling. Sarah, can we still get it covered? You can get it covered, but you're going to have that waiting period, right? Right. But we're not covering, and it needs to be in working order. So you're going to have to get it fixed before you can cover it. So, yeah, I hear that a lot. It breaks my heart. It's $450 for our best plan, you know, And it's it's sad.

Adlai: [00:39:59] It's Sarah and I was going to add to that $450 for the 13 months. Yes. So if you're thinking a monthly, it's about 40 bucks a month.

Sarah Tucker: [00:40:06] Exactly.

Adlai: [00:40:07] It's about 40 bucks a month. That covers something. That could be a lot of money out of pocket.

Sarah Tucker: [00:40:12] A little over a dollar a day.

Laurie McCarty: [00:40:13] And the reality is that that cost can be paid by the buyer, by the seller or any combination in between. You know, I for years I have said to sellers, and I know this is not popular in this market, that has been a heavy seller's market where, you know, buyers were bidding against each other to obtain the winning house. But I've always felt like this a home warranty was a protection for both buyers and sellers, because Murphy's Law says if something's going to break, it's going to break the day after we close escrow and the buyer is going to say, Oh, Mr. Seller, you knew it was breaking and the seller's going to go. I had no earthly idea, really. I haven't used that thing, whatever it was in weeks, months, whatever. And so rather than the buyer being frustrated and calling the seller or the seller's agent and rather than the seller being frustrated like, I'm out of here, I'm gone, I thought this was done. Why not for a negligible amount of money in the overall scheme of things? Offer to split the cost of that home warranty so that buyer had peace of mind and so did seller.

Sarah Tucker: [00:41:39] You're so right because it settles a lot of the the post sale litigation. You're protecting the realtor's protected the seller's protected after the close of escrow and the buyer gets gets their appliances repaired.

Laurie McCarty: [00:41:52] Yeah right. It just it it makes perfect.

Sarah Tucker: [00:41:56] Sense to me, you know, And Laurie, for those instances where they just can't they just can't squeeze that 450 at during escrow and they decide, well, I want it, but two months later, I can I can afford it, you know, give me a little time. They can get the H.W. after plan and they can get the monthly payments on that.

Laurie McCarty: [00:42:15] Okay. So so to that end, for homeowners who have been living in their homes for several years without a home warranty. Right. Maybe they had one in the very beginning and then they let it expire. And now that we're airing this show, they're thinking, oh, maybe it's time, right? Because, you know, five years have gone by. Ten years have gone by. My appliances are that much older. What factors should they consider when they're deciding to purchase a home warranty? I mean, are there any differences in coverage or eligibility compared to those who purchase a warranty when they first buy their homes?

Sarah Tucker: [00:43:00] So the great thing with our H.W. after plan, it is the exact same real estate transaction plan that we offer you during during escrow, during the first sale of during the sale of the home or when you're purchasing a home, it's the same exact plan. You get your 13 months, the same pricing. You're not paying direct to consumer prices. The only difference is you have a 30 day waiting period. Once you order your once you order the warranty, everything needs to be in working order at the time the order is placed. 30 day waiting period. Because we do that. Because you have been living in your home, you do know what's wrong with your home. So with that 30 day waiting period, it's not you're getting the warranty to get something repaired that's already broken with that. And then at the time that you order, you also will need to have a credit card on hand or a debit card when you place that order because you can pay monthly payments, it'll either need to be paid all at once or you can opt for the monthly payment. And like you said, it's a little less than $40. It's about $43 a month. $45 a month. Okay. But you still get your 13 months of coverage. You don't get 12 months because you waited. The 13 months kicks in after that, that first 30 days of waiting period. And it's the same exact coverage. Perfect.

Laurie McCarty: [00:44:18] So in that vein, if for some reason a seller is refusing to assist with a home warranty or to provide one, and maybe the realtors have said, nope, we're not going to assist, and the buyer says, but I really, really want one. I just am cash poor at this moment. Can they in the initial transaction, in the initial purchase of the property, can they pay for their home warranty on monthly installments?

Sarah Tucker: [00:44:53] We only offer that with the after plan. Okay. Yeah. But they can pay for their own. We give them 30 days to pay after the close of escrow. Okay. To make that payment, you can either do it on a credit card, a check, you can do it through escrow. Definitely. But you can also do it outside of escrow.

Laurie McCarty: [00:45:10] Okay. So they could actually take that one closing cost and put it on a credit card.

Sarah Tucker: [00:45:15] Exactly.

Laurie McCarty: [00:45:16] And that would be okay.

Sarah Tucker: [00:45:17] Yes. All right.

Laurie McCarty: [00:45:18] Super. So are there any specific situations or any types of homeowners that might not benefit as much from purchasing a home warranty?

Sarah Tucker: [00:45:33] I really don't see that in any situation. If you have a lot of money in the bank that you and you, you're not worried about a repair. Yeah, then I would say no, you probably don't need one. You could just have your repairs made and pay out of pocket if you're if you're right.

Laurie McCarty: [00:45:50] Because I was trying to think if there were any factors that might make a home warranty less advantageous for certain individuals or properties.

Sarah Tucker: [00:45:59] And if you want to get your own contractor and if you want to pay for a brand new AC unit out of pocket, go right ahead. Sure. Yeah. Yeah.

Laurie McCarty: [00:46:07] I couldn't really think of any.

Sarah Tucker: [00:46:10] I really can't.

Laurie McCarty: [00:46:10] Either. Okay, great. Um, are there any additional services or benefits that some home warranty companies offer aside from the basic coverages that we've talked about?

Sarah Tucker: [00:46:27] Are you talking about, like, tune ups and. And yeah, maybe at this time we do not offer. We are in the process of revising our plans. Okay. We are going to be adding some great coverages. I'm not sure if I can even go into that right now, but they are definitely going to have to have you back. Yes, they're definitely going to to help the consumer in many ways, not just with your home, but also maybe credit and financial coverages that way, too. So but that's in the works. It's coming out probably within the next 60 days. Okay. Yeah, great.

Laurie McCarty: [00:47:02] So many homeowners have pools as a part of their property. I know that you guys offer pool and spa coverage. Can you explain how that coverage works under a home warranty?

Sarah Tucker: [00:47:16] Yeah. So what? The pool spa combo is what we have covered. We have that for regular pool and then we have a saltwater coverage that's a little bit more pricey because of the repairs are a little bit more pricey. They are. But what that does is it covers your pool pump and all the mechanical devices above ground. Okay. So a pool pump, I recently had mine repaired $5,000. Whoa. Yeah, yeah. So we cover it. We have the pool spa coverage and never fails. The pool pump is going to go out in the middle of summer. Yep. Yeah. So, yeah, when you need it the most. When you need it the most. Yes.

Laurie McCarty: [00:47:57] So it's. It's the pool pump. What about the filter? Is that covered?

Sarah Tucker: [00:48:02] The sweep. The filter? Yeah. Everything that's above ground. Okay. Okay. So nothing inside the pool. So not the light? No. Okay. The light is not covered.

Laurie McCarty: [00:48:11] Okay. And not the sweep.

Sarah Tucker: [00:48:13] Now. Parts of the sweep. Yes. Oh, okay. The mechanical part of the sweep.

Laurie McCarty: [00:48:18] But just not the cracking of Lancaster Cosmetic.

Sarah Tucker: [00:48:23] The mechanical workings of the system. Okay.

Laurie McCarty: [00:48:26] And now I know that you guys also cover septic systems, so with for homeowners, with septic systems, how does the home warranty typically address the septic system?

Sarah Tucker: [00:48:38] Okay, so the septic system is a 30 day waiting period. You can place it at the time that you order. But the reason why there's a 30 day waiting period is because it's not something easily inspected. Right.

Laurie McCarty: [00:48:50] And typically you've already had to have that pumped and certified. Right. Because that was necessary to close that transaction.

Sarah Tucker: [00:48:59] Right. Right. So so the septic and the the the exterior water line and and septic lines. Okay. That's a 30 day waiting period after the close of escrow. We also cover the the sewage ejector pump and the septic tank pumping. Okay. So if that needs to be done and the well pump, we have a well pump coverage, too. Okay. That's a big one. Okay. And then the the external water line and sewer and septic repair lines. So what that covers is from like if you're tying in from the street on their sewer line, from the street to the house is what we covered. So where you tie into the city and then your septic line if you're out in the country. Okay. All right.

Laurie McCarty: [00:49:45] Perfect. So what So that's that's interesting because I was going to ask what type of sewer line problems you typically run into with with that kind of coverage? I mean, do you run into like tree roots?

Sarah Tucker: [00:50:04] Roots Roots are big.

Laurie McCarty: [00:50:06] Okay. And that's covered.

Sarah Tucker: [00:50:08] Yes.

Laurie McCarty: [00:50:08] Oh, how wonderful. Because, you know, I don't know what it is. We always seem to place these big, huge trees.

Sarah Tucker: [00:50:16] Right.

Laurie McCarty: [00:50:17] Right near these lines. Right. I don't I don't know what we're thinking.

Sarah Tucker: [00:50:21] But like I said, it's going to be from the street to your house where you where you tie in. So if it's on city property, then yeah, it's. Oh, of course. Yes. Okay. Yes.

Laurie McCarty: [00:50:32] All right. So let's talk a little bit more in depth about the big ticket item, the air conditioning, because, you know, with that scorching summer heat, air conditioning is a lifeline for many homeowners, of course. So we've talked a little bit about what is covered. What what do you typically see as issues with the air conditioning systems?

Sarah Tucker: [00:51:10] Well, maintaining them is, number one, you must maintain your system, change your filter once a month. Recently, I'll tell you a story about mine. Just this last week I replaced the blower on my AC unit. Really? $3,000.

Laurie McCarty: [00:51:27] Wow.

Sarah Tucker: [00:51:29] Covered It was. Covered the condenser, the blower, the coils. Now there's different AC units. You have glasspack. You have the ones on the roof. You have the ones, the split units. You have them on the ground. We'll cover. You are covered under this plan up to 5000 for it doesn't matter how many AC units you have in your home, you have a cap and that's where you're at with it. Okay, So we've replaced two, had work on two, and it was a realtor home, actually. Yeah. Both of them. Both of them went out.

Laurie McCarty: [00:52:06] Went out at the same time. At the.

Sarah Tucker: [00:52:09] Same time. It was it was awful ugly. It was awful ugly. But yeah, so we covered it. We repaired it up to the capped amount is what it is. Yes. Okay. But like I said, your your heater coverage also can be thrown into that if you're, if.

Laurie McCarty: [00:52:25] If the heating element goes bad as well.

Sarah Tucker: [00:52:27] We went through. Yes. Yes. And so that gives you an extra extra coverage there and. Yeah.

Laurie McCarty: [00:52:33] Okay. All right. So let's touch on something that we haven't talked about and that is seller coverage. So much of what we've focused on has been buyer coverage. But people forget that during the the listing and the escrow period, right? We can we offer sellers.

Sarah Tucker: [00:52:56] We do offer sellers coverage and sellers coverage is designed to cover the seller's home during the listing period up to 18 months. So you can renew three times. And it's it's essentially our gold plan with the AC coverage included.

Laurie McCarty: [00:53:17] Wow. You offer AC coverage for the sellers? We do. I don't think there's another company that offers that.

Sarah Tucker: [00:53:23] Right. Exactly. So what this is.

Laurie McCarty: [00:53:25] One more reason to use home warranty of America.

Sarah Tucker: [00:53:27] Right. So this is designed to help, you know, when a seller is selling their home, they do not want to put extra money out for a home that they're selling. So if their, let's say, their dishwasher breaks down, that covers them. That covers them. Now there is a cap on the seller's coverage for $1,500, and it's only designed for until it goes into escrow. It's not meant for like a punch list for a seller. Required repairs, right? So it covers that and it's a minimal $35 fee.

Laurie McCarty: [00:53:57] Now, what happens once it goes into escrow if you have seller coverage?

Sarah Tucker: [00:54:02] Okay, so seller's coverage, it stops at the time it goes into escrow, the seller does their repairs. And then we're hoping that the buyer continues on with the home warranty after that. And what it does if you have seller's coverage, is it provides a history of the property for the buyer. So there's no problem with a preexisting condition or you know, that it just has a history of the property already being covered. So when a claim comes up, no problem covering it.

Laurie McCarty: [00:54:30] Fantastic. And did you say that's only $35?

Sarah Tucker: [00:54:33] $35? Yes. That's amazing. And if it falls out of escrow, you're not you're not charged that $35 unless you have filed a claim on something and then you're liable for the $35. So, you know, it's a win win. Really.

Laurie McCarty: [00:54:45] It really is. Well, Sarah, that wraps up all the questions I have for you. Thank you so much, Sarah.

Adlai: [00:54:52] Now, before she goes to wrap it up here, I have a couple questions. My question is going back to the dishwasher example. What if there's excessive damage, not just the dishwasher, but like water damage that ruins floors?

Sarah Tucker: [00:55:05] Okay, That would probably be your homeowner's insurance. We cover the mechanical working of the appliance, so we are not liable for the excess damage that is caused. I would think that would be a homeowner's insurance. Absolutely.

Laurie McCarty: [00:55:19] That would be covered by your homeowner's insurance.

Sarah Tucker: [00:55:21] But you know what? I do want to add that we didn't go over is we have different types of coverages for different types of homes. We cover not only single family homes. We have townhomes and condos. Right. For for a little less cost. They are a little bit cheaper like it would be for 20 instead of for 50. We cover multi units and we have also multi year plans where you can get a discount if you do more than one year.

Laurie McCarty: [00:55:47] At a time. Oh, I don't think I knew that. That's great. Yeah.

Sarah Tucker: [00:55:49] Yeah. Yeah. So yeah. Very nice. It's discounted for your multi year plan. So if you want to just knock out two years and then you don't have to worry about that increase in the renewal costs, okay? You would do like a 2 or 3 year plan. And we also have new construction. So under your new construction, you're covered by the contractor in that first year. So after that second year, your warranty would kick in after that first year.

Laurie McCarty: [00:56:14] Oh, that's great.

Sarah Tucker: [00:56:15] So you have added coverage and you can do multi years there too.

Adlai: [00:56:18] Very cool now, and I want to add on to that too, because we talked about rentals earlier. What about people like doing the Airbnb thing?

Sarah Tucker: [00:56:25] Yeah, as long as yeah, as long as you own the home and you want to put a warranty on. It doesn't really matter what you're doing with it. Yeah.

Adlai: [00:56:32] Okay. Excellent. Excellent. And the last thing, I just wanted to make a comment. I appreciate the fact that you are in town because I feel like if you're shopping for a home warranty, you're going to go to Google or whatever, and you know, 30 will come up and you're like, Oh, this company. You're like, But I just like the fact that we can contact you in town here. So I think that's awesome.

Sarah Tucker: [00:56:54] Yeah, very local.

Adlai: [00:56:55] Thank you so much, Sarah. Thank you.

Sarah Tucker: [00:56:57] Yes.

Laurie McCarty: [00:56:58] Well, again, thank you so much for taking the time to be with us today. I appreciate it tremendously. Oh, it was a pleasure.

Sarah Tucker: [00:57:06] Laurie, Thank you for doing business with me.

Laurie McCarty: [00:57:08] Absolutely. Can't think of anybody I'd rather do business with in terms of home warranties. A heartfelt thanks to each and every one of you for tuning in today and for tuning in each and every week. Today, we've connected you with Sarah Tucker of Home Warranty of America. If you don't have a home warranty, I encourage you to give Sarah a call. You can reach her at (661) 337-0362. Perfect. And remember, if there are details of today's topic that you'd like to revisit or you know someone who would enjoy this information and couldn't tune in this hour, we've got three ways you can access the show. You can catch our encore presentation each Sunday morning at 8 a.m. here on KNBR, just before Sean Hannity. You can hear this and previous shows wherever you get your podcasts by searching the Kern County Real Estate Review or you can access the show on our website at the McCarty Group.com And there you can listen to your heart's content. This is Laurie McCarty with the McCarty Group of Coldwell Banker. Preferred realtors and your host of the Kern County Real Estate Review. Wishing you and yours a blessed day and a fantastic week ahead. You're listening to 1560 Am, 97.7 FM and XR and streaming live on CNBC.com. We'll be back next week.