Increase Visibility in the Market
There are numerous benefits to adding a home warranty to your listing. First, it is a valuable marketing tool that sets a home apart from those that don’t have a warranty. To attract more buyers, home sellers should purchase home warranty coverage as soon as they list their home. A home warranty can add value and make the listing stand out. The seller can pass the cost of the premium on to the buyer at closing or negotiate this before agreeing to an offer.
Additionally, a home warranty can help the seller avoid unwanted surprises before the home closes. Also, if there are problems with covered home systems and appliances found during the home inspection, it can help the seller lower out-of-pocket costs for repair or replacement. On the other hand, buyers have the right to purchase a home warranty of their choice and to ask for the seller to pay for it. But in today’s seller’s market, where properties often have multiple offers, a buyer may not want to ask the seller to pay for this expense because they want to make their offer more enticing.
Reduce Risk and Add Budget Protection
Most home warranties cost under $500 and not only cover the buyers for the first year, but the seller is covered in part during the listing period prior to closing. Different companies offer different seller benefits during the listing period so you will want to discuss with a real estate professional which company offers the most benefits for the money on your property type.
The last thing a home buyer wants to worry about is what could possibly break or malfunction in their new home. Home system and appliance repairs or replacements can break the budget of a new homeowner. For peace of mind, it's a good idea to get a home protection plan. Buyers, particularly first-time buyers, like the fact that they can rely on a warranty to pay for repairs during the first year while they are settling into a new home. It’s recommended that buyers purchase a home inspection before they buy a home warranty because many home warranty companies will not provide coverage for pre-existing problems. It’s important to understand what is and isn't covered before choosing a home warranty.
Increase Buyer and Seller Confidence
Home sellers, especially if they are selling a home with older appliances and systems, can purchase a one-year warranty that can protect them while their home is on the market and can be transferred along with ownership of the house to the new buyer. Not only does the home warranty provide an extra incentive for buyers who are concerned about potential costly repairs, but it can protect sellers in case a water heater, oven or other covered appliances need to be fixed.
As a seller, you can lessen the worry about costly breakdowns while you’re trying to sell your home and keep expenses to a minimum. Buyers can have peace of mind knowing that for one year after closing they won’t be stuck with a costly unexpected repairs. It is a win/win situation for both the seller and the buyer.
