SHOULD SELLERS OFFER HOME WARRANTIES?

 


If you are selling your home, one of the most common requests with the buyer’s offer is to pay
for a home warranty. As a seller, you might be wondering if it’s something that’s worth the
expense. Some agents suggest that the seller purchase a listing warranty as well as part of the
sales process. Understanding the benefits of a home warranty is the first step in deciding if it’s
worth the cost to you, the seller.
A home warranty is a policy which covers the cost of repairs to a number of critical systems in
the home. While coverage varies, most cover electrical, plumbing, heating, air conditioning
and appliances. Some optional coverage could include pool and spa, roofing and code
protection among others. In the event that a home buyer has a problem with any of the
covered systems, the warranty would send a service person out to make the repairs for only
the policy deductible – usually between $65-100 per problem.
The home warranty provides peace-of-mind to the buyer that if an undetected problem shows
up after the close; their out-of-pocket cost is limited to the small deductible. While this does
not negate the need for a professional home inspection, it can push a transaction to close with
buyers who are nervous about unexpected problems. As an additional bonus, most warranty
companies offer a free listing warranty which covers unexpected issues during the listing;
often saving the home owner hundreds of dollars in repairs arising from the inspection.
Offering a home warranty in the listing is one way to demonstrate to potential buyers that the
condition of the home is important to the seller as well. You take maintenance seriously and
they can rest assured that they are making a good investment.

Posted on August 21, 2019 at 6:47 pm
Michelle Way | Category: Uncategorized

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