Buying or selling a home in any market is fueled by equal parts excitement, exhaustive planning and re-planning, and anxiety. A home warranty isn’t going to pack any boxes but it can alleviate some of the anxiety for all involved.
Benefits for the Buyer Are Obvious
During the walk through all those well-loved appliances didn’t provide enough ammunition to demand replacement but sure looked like money traps ready to spring immediately after move in. It’s true that most real estate purchase contracts include repair contingencies, but hashing out those details with an uncooperative seller while you shower in cold water with no hot water heater is just not ideal. It would be easier to contact a home warranty company who will expedite the repair immediately. Most home warranty companies have a group of service providers whose quality is guaranteed, making it much easier for the homeowner to reach the service person should a problem re-occur. The warranty company also helps coordinate if two different service providers are required. For instance, a plumber to replace a cracked pipe and a drywall professional to fix the wall. Since there is no way of knowing how well the previous owners maintained their appliances and kept up on preventive maintenance on furnaces, hot water heaters, a/c units, etc., buyers might do well to consider renewing their warranties for a year or two after they expire.
Added Benefits for Sellers Alike
For sellers, knowing that they won’t have to shell out unexpected cash while trying to deal with their own moving expenses is a great benefit. Home warranty companies often offer free coverage during the listing period if you’ve committed to buying a warranty after the sale. Whether it’s a legitimate maintenance issue or merely cold feet, repair disputes are among the top reasons buyers back out of a deal. Surveys have shown that buyers are 80% more likely to move forward with a purchase of a home when a warranty is offered. Greasing the wheels of the closing is a valuable measure and perhaps the biggest benefit is knowing that if there is a problem, it will be the warranty company getting a phone call and not you. This is especially advantageous if you will no longer be local to that area.
Most warranty companies offer different levels of coverage but the cost from the most basic level to the premier tier may only be a few hundred dollars. Depending on the age of your appliances or if there have been prior repair issues that are cause for concern, the extra money at the outset may be worth it. Speak to a real estate professional about specific seller liabilities to find the policy that best fits your needs. Buyers often have the opportunity to upgrade their coverage if they choose.
Find A Trusted Agent
Many real estate agents have made home warranties their go-to gift for buyers and sellers alike. Making closings easier and more likely to happen the whole process easier and less stressful to manage. If you need an agent that will always keep your needs at the forefront of the process, work with the dedicated professionals at Elevation Realty. We work closely with our clients and achieve their confidence in our work. Learn more about the market trends in your area
and get started on your buying or selling process today!