Tuesday, July 11, 2023
If you’re planning to list your home, you want it to stand out from others that are for sale. You want a potential buyer to feel confident that your house is the right one, and you want the deal to proceed smoothly. Getting a home warranty while your house is listed can help you achieve all those goals.What Is a Home Warranty?
A home warranty is a service contract that covers repair or replacement if a system or appliance breaks down, in exchange for a relatively small service fee. It’s not like homeowners insurance, which is meant to cover repairs from expected events, such as a storm or fire.
Home warranties vary in terms of their levels of coverage. You can buy a warranty that only covers major systems, such as the plumbing and HVAC, or that only covers appliances like the washer, dryer and stove. You can also select a comprehensive warranty that provides broader coverage.
Costs for home warranties vary by company and by the level of coverage. Some companies offer home warranties at no cost to customers who are selling their homes. When you sell your house, you might be able to transfer the home warranty to the buyer. The cost of the warranty will come out of your proceeds from the sale. You won’t have to pay the fee up front out of your own pocket.
Why Should You Get a Home Warranty?
Offering a home warranty can give a buyer an incentive to choose your house instead of another. The offer of a home warranty can be particularly helpful if your house has one or more systems or appliances that are older. A buyer won’t have to worry about paying a large repair bill soon after moving in.
Anything that’s working when a buyer makes an offer should still be working on closing day. If something breaks down in between, you’ll have to get it fixed or offer a repair credit, or else the buyer might walk away. If you have a home warranty and a problem arises, you’ll be able to have repairs made at a small cost and won’t have to worry about the deal falling through.
A home warranty can save you a substantial amount of money if the buyer gets the house inspected, then requests major repairs or a price reduction. You’ll be able to use a home warranty to have repairs made at little cost to you prior to closing or transfer the warranty to the buyer so repairs can be made later. Either way, you’ll be able to move forward with the sale and avoid having to pay for expensive repairs out of your own pocket.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com
