Boost your Chances of Selling your Home with Home Warranty
These days sellers are looking at a wide range of options to help them improve their chances of selling their homes. One area that many sellers are looking into is a special insurance policy to catch the attention of prospective buyers.
A home insurance policy typically does not cover problems such as electrical or plumbing issues. If something should go wrong with a home after an offer has been made on the home or even after the new buyer has moved in, sellers can sometimes find themselves facing repair bills amounting to thousands of dollars. The problem is that most sellers make the mistake of thinking that just because they have transferred ownership of a property to the new buyer they are relieved of any responsibility if there is a major problem with the home. This can be particularly problematic for sellers who sell their homes on their own without the assistance of a real estate agent. In this case a seller's home warranty can make a lot of sense.
Not only will the warranty cover the cost of any repairs in the event there is a major breakdown in the home, but it can also make a home appear much more appealing to prospective buyers. Considering the number of homes that are currently for sale in most markets, it is important to do everything you can to make your home stand out as much as possible. Buyers today are much choosier than they have been in the past. There is a significant inventory of homes to choose from and most buyers are well aware that they are currently driving the market. To catch the attention of buyers, you need to do whatever you can to put their fears to rest. Offering a home warranty policy is an excellent way to do that.
A home warranty provides prospective buyers with a tremendous amount of peace of mind. After all, the last thing a new buyer wants to have to deal with when they have just moved into a new home is an unpleasant surprise. When a home warranty is offered as part of the deal they will know that if something should go wrong with the home, they will be covered. This can be particularly important if you are selling an older home.
When there is a major failure in a home, determining who will be responsible for paying for the damages and the cost of the repair can result in serious arguments. This type of unpleasant situation can be completely avoided through the purchase of a seller's home warranty. Basically, the home warranty picks up and provides coverage where a typical home owner's insurance policy leaves off. It bridges the gap by paying for issues such as plumbing, heating, air conditioning, electricity, etc. Of course, such items will only be covered if they should fail on their own. Warranties do not usually cover code violations, improper maintenance or installation and unordinary wear and tear that might lead to failure.
The exact coverage of a home warranty can vary based on the provider. Before purchasing a home warranty, it is important to make sure that you have carefully read the policy and that you fully understand it. Most home warranties last for about a year. Pools and hot tubs are not usually covered under a home warranty, although some providers do offer the ability to extend coverage for an additional fee. The buyer will usually be provided with the option of renewing the warranty coverage when the original policy expires. The price for the renewal of the policy can vary, but is sometimes more than the initial cost of the original policy.
There are a couple of ways that sellers can go about providing such a policy. One option would be to go ahead and purchase the policy before the home actually sells. This will give the sellers the assurance that if something major goes wrong with the home while it is on the market they will be covered. Of course, the downside to this option is that if your home remains on the market for an extended period of time without selling, you may find yourself needing to renew the policy. The other option is to wait until you have accepted an offer on the home and then include the cost of the home warranty as part of the closing costs. In this case, prospective buyers can be advised that a home warranty will be provided with the sale of the home.