How Home Warranties Potentially Help Sell Homes

Posted by in Home on October 8, 2014 0 comments
Whether the current real estate market is cool or hot, home sellers who wish to make the pot a little sweeter should offer their potential buyers a home warranty plan. What exactly is a home owner warranty and what does it include?

In general, the seller’s warranty offers an extra layer of protection and assurance concerning any significant repairs to plumbing, electrical, major appliances, and other key home systems which are covered by the home seller within a certain amount of time once the home is purchased, with the exception of a standard deductible amount of less than $100. Home seller’s warranties are typically always provided by new home builders. Today, however, they’re gradually becoming more and more popular as a key sales tool for any kind of home, whether it’s newer or older. As for the seller, the expense may run about $400, but is well worth the cost if it means more money and a quicker sale regarding their home.

There are a few real estate companies that will provide a home owner warranty at virtually no cost to the seller throughout the listing period for the home. However, the best rated home warranty companies request that the seller pay for the cost of the warranty, especially if it pertains to something they want to offer possible buyers, often with the cost built directly into the home’s sales price.

What a Homebuyer’s Warranty Includes

Buyers can purchase a similar warranty as well. The cost is usually the same at around $400 for what a home seller would actually pay for virtually the same coverage, and a homebuyer’s warranty includes all the same items as the warranty for the seller as well. The key difference is that the homebuyer’s warranty usually starts on the closing date and typically lasts for a year. Also, another main difference is that the warranty for the buyer can easily be renewed each year or they can choose to let it expire.

There are a number of best rated home warranty companies that provide warranties for both buyers and sellers. There are endless companies that offer warranty plans. Go online and do a search or perhaps contact your local real estate agent to see who they suggest.

Just like any other product or service before buying, it’s best to do your diligence and thoroughly research any warranty or contract whether it’s a buyer’s or seller’s warranty before making a commitment. After that, if you then decide if a certain warranty is valuable and is worth the money given your particular needs, be sure to compare all the different programs to determine which ones are actually available in your local area, their general cost, what they specifically include and cover, the amount of the deductible, anything else that may be left out from the particular program, and any other unforeseen variables before committing. Keep in mind, it’s your choice to offer the home warranty. However, if you’re considering taking an offer that’s less than the full asking price, you can request that the buyers provide their own home warranty.

By providing this key service, it will add to the overall appeal of your home and to potential buyers. A solid warranty gives your buyers an extra layer of security they both want and need.