What are the benefits of using a home warranty to sell your home?
Our company and team actually use another company called Home Security of America (HSA), and they provide warranties on the sale of existing or used homes. This coverage actually covers all the mechanical systems in a home, such as plumbing, electrical, heating, air conditioning, water heater, and even the appliances that are included in the sale of the home. It covers the buyer for up to one year after closing.
On a single-family home, the cost of the coverage would be $564. If it was a condominium, the cost would be $535. The buyer is then able to extend that beyond a year after they buy it.
A home warranty makes a buyer feel more comfortable.
Many of our sellers are using this as a marketing tool to sell their home. If they do provide it up front, the seller actually gets free coverage on items while the home is listed for sale. For example, we just had a client who had a water heater replaced while the home was listed and got a brand new one for a nominal deductible of $100.
There are two main benefits:
First, it’s a great marketing tool. If your home has a warranty and another competing property doesn’t, that may make the buyer feel more comfortable in buying the one with a warranty. Plus, all new construction has a builder’s warranty for one year.
Secondly, it adds peace of mind. This is especially true in cases where a seller may have older components in their property, such as an older furnace, air conditioning, plumbing, or electrical. All of that is covered for the buyer for up to one year after closing. They also don’t have to actually replace these components. If you have a 20-year-old furnace that still works, you can keep the furnace and offer a home warranty!