Advertising Supplement
NOW & THEN How American Home ShieldÂŽ has moved forward with the real estate industry for almost 50 years
1971
THE YEAR IS
1971
A movie ticket is $1.50 and a gallon of gas is 40 cents. Mary Tyler Moore can turn the world on with her smile. The top song is “Joy To The World” by Three Dog Night. A ticket to see “Willy Wonka & the Chocolate Factory” is less than $2. Homes cost less — way less — but the 30-year fixed mortgage rate starts at 7.25 percent. And inflation is on the rise at 5.84 percent1.
1
factsofthe70s.com
In 1971, homeowners had very few resources for finding reliable help when their A/C, refrigerator or other home systems and appliances stopped working. Their choices were either to scan the phone book for a contractor and hope they got lucky, or to ask a friend for a recommendation. Even then, results weren’t guaranteed, and the costs could be astronomical. That’s why American Home Shield created the first-ever home warranty. It solved two big problems — finding reliable help and managing costs associated with home repairs.
A lot has changed in the nearly 50 years American Home Shield has been in business. Neutral color palettes are favored over the beloved bright oranges and browns of the 70s, home prices are almost 10 times what they used to be, and homeowners are busier than ever — which translates to wanting to spend what little free time they have enjoying their homes and not worrying about maintenance, breakdowns, and repairs.
A LOOK BACK: HOW REAL ESTATE HAS EVOLVED IN HALF A CENTURY When American Home Shield founded the home warranty industry in 1971, things were a bit different. The median U.S. home price that year was around $25,000. Today, the median U.S. home price exceeds $300,000, and newly built houses are about 1,000 square feet larger than single-family homes built 40 years ago. Additionally, homebuyers shop for and purchase homes differently than they did decades ago. For example, according to the Real Estate In A Digital Age 2018 Report by the National Association of REALTORS® Research Group, 22 percent of homebuyers in 1981 read newspapers to find a home, and 8 percent used friends for information. In 2018, 44 percent of homebuyers looked for properties online first. Changing with the Times The real estate industry has adapted to the digital wave, as the report points out, with over 90 percent of firms having websites that feature property listings. In addition to web use, real estate professionals in 2019 use mobile devices for tasks that include client communication, a stark contrast to 1971 agents who were likely
tied to landline office phones. In fact, the same report says that 93 percent of REALTORS® prefer to communicate with clients through email and that 77 percent use social media with Facebook, LinkedIn, and Instagram being the most popular platforms. Another key change is that many real estate professionals, as well as buyers and sellers, use a variety of mobile and desktop software apps for real estate transactions. For agents, there are apps for tasks that include marketing, lead generation, and time management, among others. Buyers have apps that enable them to search for homes and find the best mortgage rates. Real estate closings have changed, too, thanks to digital resources. In 1971, real estate transactions likely closed with all parties gathered around a conference table for contract signatures. Today, with electronic signature software, agents and clients may not even be in the same country when a transaction is completed. In addition to convenience, digital signatures can reduce document costs and turnaround times, making closings easier and faster.
BOSTON, MA
SMART HOME PRODUCTS Control lights, fans, security systems, thermostats — all with the tap of a phone screen. The typical household in North America is expected to average around nine smart devices by 20222. 2
Forbes.com
While many aspects of homeownership have gotten easier, 36 percent of homeowners listed unexpected maintenance or repairs as their
BIGGEST PAIN POINT . 3
3
Zillow.com/research
THE HOTTEST REAL ESTATE MARKETS ARE 4
BOSTON, MASSACHUSETTS
LAFAYETTE, INDIANA 4
Based on buyer activity and active inventory, Realtor.com, 2019
Over the years, homeownership has evolved. And American Home Shield has evolved, too. We’ve built our family of brands by acquiring three others, including HSASM Home Warranty, Landmark Home Warranty, and OneGuard Home Warranty. Serving customers in all 50 states and with contact centers in Arizona, Georgia, Iowa, Tennessee, and Utah, we have over 2,400 associates across various departments. This includes roughly 200 field associates working to help real estate professionals protect their clients and grow their business.
1971
1984
1987
1990
American Home Shield is founded in Santa Rosa, California
HSA Home Warranty is founded in Madison, Wisconsin
A second call center opens in Carroll, Iowa
OneGuard Home Warranty is founded in Phoenix, Arizona
A MODERN CLASSIC American Home Shield is redefining the home warranty industry with the mission of helping to make owning a home a little easier.
We’ve evolved our services, too, with easy online service requests, a network of more than 16,000 licensed, independent contractors, and innovative new service offerings. In 2018, Frontdoor, Inc., the parent company of American Home Shield, was formed. Frontdoor is obsessed with taking the hassle out of owning a home and being the first choice when it comes to home repairs, maintenance, and improvements — which aligns with the goals of American Home Shield. Still the leader of the home warranty industry today, serving more than 1.8 million customers, American Home Shield is proud to be America’s Most Preferred Home Warranty.
1994
2003
2005
Corporate headquarters moves to Memphis, Tennessee, and a third call center opens there in 1997
American Home Shield opens its third call center in LaGrange, Georgia
Landmark Home Warranty is founded in Salt Lake City, Utah
2019
A part of Frontdoor, Inc., the first technology center opens in Denver, Colorado
CHANGING FOR THE GOOD The needs of homeowners are changing every day. That’s why we’re constantly looking for ways to improve our plans and add value for you and your clients. Our real estate plans lead the industry in coverage because we simply cover more than many home warranty companies — more parts, more components, more causes of breakdowns — and that means more value.
ShieldCompleteSM
ShieldPlus
SM
ShieldEssential
SM
Comprehensive Coverage
Systems and Appliances
Home Systems
Covers components of the most critical home systems
Covers components and parts of many components major home systems Covers of the and appliances most critical home systems
Covers everything in the ShieldEssential and ShieldPlus plans, Covers components of the plus additional items
most critical home systems
LIVABLE AND FORGIVABLE COVERAGE Every real estate plan comes with our Livable and Forgivable Coverage. That means our coverage is built for everyday life — and all its messiness. So, if the dryer breaks because it was installed incorrectly, pipes fail because of rust, or costly permits are required to do the repairs — we’ll take care of it.
We cover breakdowns due to:
And even things like:
Lack of maintenance
Removal of defective equipment
Rust and corrosion
Refrigerant recapture, reclaim, and disposal
Sediment
Permits ($250 per agreement term when required during a covered repair or replacement)
Mismatched systems Undetectable, pre-existing conditions Improper installations, repairs, or modifications
Code violations ($250 per agreement term when required during a covered repair or replacement)
View the full list of coverage at ahs.com/realestate.
Make it your own Add these items to any Shield plan and make sure our coverage fits your client’s home perfectly.
Seller Coverage Option
+ Electronics Plan by AsurionÂŽ + Seller Coverage Option while a home Electronics Plan
is on the market
+ Well pump and septic system + Pool/spa equipment + Guest units + Roof coverage available in California,
Pool coverage
Nevada, and Oregon
Special customer offers Did you know American Home Shield customers benefit from impressive discounts on new appliances and pricing on a variety of convenient home services?
HVAC tune-ups
Rekey service Seasonal HVAC tune-ups
Rekey service
TV installation and setup from HelloTech New appliance and air filter discounts Discounts on new appliances Limitations and exclusions apply. See agreement for details. Additional services are not included in the Seller Coverage Option. For buyer use only.
Electronics Plan by Asurion: This option is subject to a $2,000 per Electronics Plan claim limit and a $5,000 aggregate Electronics Plan claim limit. Electronics-related coverage and services are provided by Asurion Services, LLC. Not available in California. Seller Coverage Option: Subject to a $2,000 cap for all trades during the listing period. Rekey Service: A service professional will rekey up to six keyholes for exterior hinged doors and provide your clients with four identical keys for the price of their Trade Service Call Fee. Replacement of hardware not covered by the Rekey Service. Seasonal HVAC Tune-ups: Tune-ups are available seasonally (spring: A/C; fall: heating) for $75 per unit. TV Installation from HelloTech: Only for TVs 60 inches or smaller, to be mounted onto drywall backed by wooden studs for a rate of $99. Mounting brackets not included. Additional charges for different surfaces, metal studs, and TVs larger than 60 inches. Not available in all states. Roof Coverage: All roof related coverage and services are provided by and the sole responsibility of Roof Rx.
Chosen by women for women. Six years in a row.
Women’s Choice Award® surveyed women across the nation and they selected
American Home Shield® as America’s most recommended home warranty service. With only one recipient in each category, winners are selected based on a survey completed by a database of women consumers. That means that more women understand the benefits of having coverage from American Home Shield and see us as a reliable, trustworthy, and worthwhile home service.
Be sure your clients are protected by the warranty more women recommend. Visit ahs.com/realestate to learn more.
The mission of Women’s Choice Award is to give women a collective voice so that they can help each other identify brands, products and services that deserve her loyalty and referrals. We are a trusted referral source for women who are searching for the most recommended hospitals, businesses, brands and services. Find out more at womenschoiceaward.com. See contract for full coverage details. ©2019 American Home Shield Corporation. All rights reserved.