When selling real estate, standing out from the crowd of listings can be a real challenge. Along with creating a listing that catches attention, it is important to offer something that attracts potential home buyers to actually view a listing. There are a number of ways to attract viewers, but one innovative way is to include a home warranty with the real estate sale. Research shows that real estate for sale offering home warranties sell faster and for a higher price than real estate that do not offer home warranties. The benefit is less time listed and a higher closing price. Home warranties can be a useful and affordable tool for both sellers and buyers.
What is a Home Warranty?
A home warranty typically helps cover the cost of repairs or replacement for home systems and appliances. A home warranty is involved when something mechanical fails within your home, such as an appliance or home system due to normal wear and tear. For reputable home warranty providers, the age of your mechanical systems and appliances does not matter. There is typically a 30-day wait period in place to help keep your plan costs down, and protect the provider from pre-existing conditions.
Home Warranty Advantages For Home Sellers and Buyers
Typically, home warranties provide both seller coverage and buyer coverage. While the home is listed, or in escrow, the seller can use the home warranty policy to make repairs or replace systems that stop working, provided that the problems were not pre-existing. When the home sale closes, this warranty is then transferred to the buyer. Home warranties are a big help during escrow when a buyer submits a list of repair requests after getting their home inspection report. If any items on the repair list are covered under the home warranty, the seller can use the policy to help cover the costs of those repairs. Once the home sale closes, the warranty starts over fresh with the buyer and provides a year of coverage.
By offering a home warranty, sellers provide buyers with peace of mind knowing that should anything go wrong with their major life purchase, the home warranty will cover the major part of the cost to repair or replace the covered item. No buyer wants to spend all of their money saved on a house down-payment and sale closing costs, only to move in, and have the plumbing system break down, causing them to spend even more money to repair or replace. A warranty provides reassurance to buyers knowing they are not going to go into more debt, three days or more, after moving into their new home.
Home warranties offer just one more great way for buyers to feel secure in their home purchase. Real estate and a home warranty is an effective combination when buying or selling a home. If you’re looking for a smart way to attract more potential buyers to your home listing, consider a home warranty with your home sale. There are various types of warranties available at very affordable prices, so you can find a warranty that meets your needs and budget.