Home warranties don’t replace home owners insurance but adds to it, and the confidence it provides to potential buyers can’t be understated.
There are a lot of companies that offer warranty policies. The industry has been around for a long time, and like any industry, has its shining moments as well as faults.
But when your home is one the market, you know you need to do everything possible to rise above the noise and clutter. Buyers compare your home to others…no one buys in a vacuum, so you need an edge. A home warranty may be that edge. Here’s why you should consider one:
1) You can brag about it: We know that most people start their search online for homes…having your agent include a statement about ,’comes with a home warranty,’ immediately makes buyers feel like your home is less of a risk, and that you’re not hiding anything that will create a surprise.
2) Your home is old: Old homes are great. Many are made with better care and quality than new-construction homes these days. But for a lot of buyers, old=expensive and break-down prone. Nervous buyers or new buyers are looking for a little assurance that their potential purchase won’t be a mistake or at least one that won’t set them back too far financially.
3) The buyer inspection revealed a lot of problems: Maybe nothing serious, but a lot of little things that the buyer is asking you to pay for, fix, repair, deal with. If you’re selling, you have plenty on your plate. Keep the negotiation process moving along by offering to throw in a home warranty as part of the back-and-forth in the inspection period.
4) You don’t want to spend money while your home is on the market: If you’re selling and buy a home warranty, most companies will cover problems while your home is on the market (read the fine print of the company contract you choose). This means that you won’t be out-of-pocket monies that you can use on other moving expenses if something breaks or need fixing, and it means that you keep your home in working order, increasing chances of getting an offer. No buyer wants to hear that the washer or stove doesn’t work. They start wondering where the other problems are, too.
5) Your buyers are young/old/single/first-timers: Most people are a little apprehensive about buying, but some folks have more to worry about than others. First-time buyers, folks who aren’t handy, single parents, elderly buyers; these people may not have the time, energy or resources to deal with issues as they come up. The peace-of-mind that a home warranty can provide can turn the skeptical buyer into a more confident buyer.
Home warranties aren’t a panacea for every problem you, your home or your buyers have. But they can go a long way to bridging the fear-gap and turning a deal from possible into probable.