A home warranty. That’s the tip that will help you sell any house faster and, if you are smart about this, at a higher price as well. This simple policy doesn’t cost much, but it offers something nearly invaluable. It provides reassurance to the buyer, which is something that can tip the scales in your favor when they are deciding between several properties.
However, you need to understand that California has dozens of companies that offer this particular type of service. Sadly, not all of them are reliable. And the ones that are downright untrustworthy give a bad name to the entire industry. You need to choose a warranty provider very carefully because prospective buyers can find out whether the policy covering the property can be trusted with a simple Google search.
Benefits of Home Warranties for Home Buyers and Sellers
The main benefits that sellers get from offering a home warranty to go with the property are higher price and speed of the sale. According to the LA Times, on average, home with these policies sell 11 days faster and their price ends up being about $2,300 higher than homes without a warranty.
Bear in mind that the average cost of a home warranty policy is $300-$600 per year, claims Consumer Reports. The math is simple, you will score a major win by paying for a reasonable home warranty coverage.
Note that buyers benefit from this policy as well. This kind of protection provides them with a reassurance that they won’t have to spend a fortune on repairs and maintenance of all appliances and home systems after they buy their new home. This reassurance is a major selling point that the real estate agent needs to highlight when showing off the property.
If you go present it well, buyers might be willing to pay for a property they haven’t even considered before. Be sure to explain that the warranty does not only provide financial coverage for appliance and home system repairs. Its provider also takes over all negotiations with contractors. Therefore, the homeowner only needs to contact the warranty company and report their problem. It will then be the company’s duty to find the best contractor and organize all necessary steps involved in getting that problem fixed fast and at a reasonable cost.
As companies cover a wide range of home systems and appliances, the homeowner will save a lot of time by managing all their repairs and maintenance through this one service.
Where and Why Home Warranties Are the Most Popular?
Unsurprisingly, the states where home warranties are most popular are the ones with the most active real estate markets. Of all those, two states stand out in particular. Florida housing market is getting hotter by the year and so does the home warranty industry. With the high demand for AC systems maintenance and repair, it’s also no wonder that alongside Florida, you can see the rise of home warranty companies in California. They stand at the ready to meet the needs of local homeowners offering coverage for home systems and appliances that suffer under great strain in this hot and sunny state.
Other places deserving note due to the relevance of home warranties there are Arizona and Texas. Both are states where houses are the prevalent type of real estate and those houses today are filled with sophisticated home systems and appliances. Those require careful handling, maintenance, and repair to avoid huge unplanned costs and home warranties provide you with some financial coverage for those.
How to Choose the Best Home Warranty Plan for You
In order for a home warranty plan to help you sell a house faster and for a bigger buck, you need to make sure that it’s a good plan. Therefore, the first thing you should do is to make sure that the provider of this plan is trustworthy.
To do that you should study reviews of the service, both professional and personal shared through Yelp and other similar consumer forums. You should also run a search to determine whether the home warranty company is involved in any litigation. The cases surrounding home warranty scandals usually get sufficient coverage. Therefore, you will be able to learn about any serious legal trouble in the company’s past.
However, making a short list of reliable providers isn’t the end of it. You also need to find a plan that will fit the house best. This means that you need to consider exactly what the plan covers and pay attention to details. For example, many home warranties exclude repairs to specific parts of commonly used appliances, and those are the parts that break down most often.
You need to find a plan that doesn’t have these and other loopholes that home warranty companies can use to deny rightful claims of the homeowners. Be sure that prospective buyers will take their time studying the contract for a warranty you want to sell with the house. Should they see something underhanded there, you might lose a client and get a black mark that will damage your reputation.
A home warranty plan is something that should benefit all parties involved in the real estate deal, and there are many plans that can do exactly that. You only need to put in the time and effort needed to compare the many available options and find the one that suits everyone. As a real estate agent or home seller, you cannot allow yourself to fall for the promises of home warranty companies that offer payouts for referrals. It’s your reputation and deal on the line, so you have to be sure that what you offer with the property is the best.
Should you Invest in a Home Warranty?
There can be no doubt that home warranties have their pros and cons, so this type of protection is not for everyone. However, it definitely benefits home sellers and real estate agents greatly by offering reassurance to home buyers. Therefore, if you need to sell a property, a home warranty plan with comprehensive coverage will be a wise investment.
But remember that in order to find this kind of plan, you’ll need to research warranty providers thoroughly. Many of these businesses are unreliable, so take your time finding the one you and the future homeowner will be able to trust.