Should I include a home warranty when I sell my home?
When buying something, most of the time a guarantee or a warranty is included. Dependant on the item being purchased, a warranty can be included by the maker or the manufacturer or through a service bought and paid for by the owner. In some instances, a warranty is not needed and can seem downright ludicrous but in others, it can end up saving you thousands of dollars a year!
Expensive items such as cutting edge devices or high end vehicles usually come with a manufacturers guarantee or warranty that will protect your item for a set period of time. Often times, a longer extended warranty can be purchased by the owner once the manufacturers warranty expires.
Some people may question if a warranty is worth it when it applies to their home. If selling the home, should the seller give the prospective buyer some additional coverage? Most of the time the answer is yes and it is reflected in the industry. More than half of new home purchases are provided with at least a year long warranty through a nationwide company.
Protecting the seller
Putting a house on the market can be one of the more daunting experiences a homeowner will ever face. Many things must be completed in order to prepare a home to go on the market; home inspections must be performed, finding a reliable realtor and closing attorney as well as worrying about showing the house off to potential buyers.
This is usually enough to make ones head spin but what about something happening to one of the big ticket items in the house while you are trying to sell it? Purchasing a brand new furnace can add an entirely new level of un-needed stress for the seller. Considering a new furnace can run someone thousands of dollars, it is understandable why a home warranty might be appealing. Often times, a home warranty company will cover a property while it is still listed! This can be a godsend to sellers who are not wanting to put even more money into the home. Imagine only having to pay a fraction of the cost in the form of a service fee and getting that $2000 repair taken care of.
Home warranties can be used to cover the property while trying to sell it and are typically at least one year in length although many home warranty companies do offer extended year plans. If you are a seller and have taken advantage of a home warranty with a one year plan and that plan expires, your house may have other reasons that are preventing it from appearing attractive to prospective home buyers.
Although home warranties are extremely similiar in many regards, every single company will have different plans and different combinations of coverage. Most of the nationwide home warranty providers will cover all of the major appliances such as dryers and washer, kitchen fridges and dishwashers. They also will cover the "bones" of the house, things such as the furnace and air conditioning, the plumbing and the electrical system in the home. Most customers of home warranties are looking for help with the big ticket items in the home. A home warranty is a sure fire way to ensure your buyer is satisfied with his purchase for years to come!