These days, most items that we purchase also come with a warranty; items like, devices, TVs, cars and computers. Usually for an extra fee, we can rely on these warranties to provide us peace of mind if and when they should break or no longer work properly.
Houses should be no different. Offering a home warranty has substantial benefits to a prospective buyer. There are many home warranty companies and plans. The ones we are most familiar with typically offer a buyer coverage of the main operating systems of the home for one year from the date of closing. Should something fail, the hot water heater, as an example, the new homeowner simply calls the warranty customer service number and requests and service call. The contractor will assess the situation and if the repair is fully covered under the warranty, the homeowner only pays a small deductible for the work.
One of the great features of a home warranty, in our experience, has been the seller coverage. Once a seller opts in to offer the warranty, the seller themselves are covered for the term of the listing. This has been critical for sellers when the home inspection has uncovered a defect in something in the house. Instead of paying for the entire repair, the seller would also pay a small deductible and the job would be completed by a licensed contractor.
This did, in fact, happen to one of our sellers. There was an issue with the furnace that the home inspector discovered. The buyers requested that the furnace be fixed prior to closing and money was tight for our seller. Luckily, we had signed our client up for the home warranty when we took the listing, and it only cost $100 out of the seller’s pocket. The buyers were satisfied with the work done from the contractor and proceeded with the sale. They had one year of coverage after the closing and our seller put minimal funds into the repair–a true win/win.
While not all home warranty companies are the same, our experience with some of the companies we use regularly has been great. Offering the warranty is a great marketing tool that attracts buyers and helps to make the repair negotiations easier. Contact us today for more details on home warranties!