Selling Your Home? Consider a Home Warranty for Increased Appeal and Value
If you’re planning to sell your home, you’re likely looking for ways to increase its curb appeal and maximize its value. While staging your home and making necessary repairs are both smart strategies, have you considered adding a home warranty to your arsenal?
What is a Home Warranty?
A home warranty is a service contract that covers major systems and appliances in the home, such as the furnace, air conditioning unit, plumbing, and kitchen appliances. It’s similar to home insurance, but it’s designed to cover the cost of repairing or replacing these vital components if they fail due to normal wear and tear.
The Benefits of Selling a Home with a Warranty
According to a study conducted by the Service Contract Industry Council, homes that are sold with a home warranty tend to sell for almost $2,500 more than those without. Additionally, homes with a home warranty sell an average of 16% faster.
Why is this the case? Firstly, the peace of mind that comes with a home warranty can be a major selling point for prospective buyers. Knowing that major systems and appliances in the home are covered can alleviate concerns about unexpected repair or replacement costs.
Additionally, some companies offer free listing coverage for homes with a home warranty, which may attract more potential buyers. Furthermore, a home warranty can be transferred to the new owner during the time of closing, which makes the home a more attractive investment.
How to Transfer a Home Warranty
Transferring a home warranty to a new owner is typically a straightforward process that involves calling the home warranty company and providing the name of the new owner. Some companies may charge a nominal transfer fee, while others do not. Either way, transferring a home warranty is a quick and easy way to ensure the new owner of the home is protected.
If you’re planning to purchase a new home after selling your current one, it’s worth considering a home warranty for your new property. Many home warranty companies offer the option to cancel your current contract and apply the refunded money toward a contract for your new home.
Finding the Right Home Warranty
When choosing a home warranty for your current or new home, it’s important to research your options and compare plans. Look for a company with a solid reputation, transparent terms and pricing, and coverage that meets the needs of your home and lifestyle.
Some factors to consider when choosing a home warranty plan include:
– Coverage: Make sure the plan covers the systems and appliances that are most important to you.
– Service fees: Look for a plan with affordable service fees, as these are the costs you’ll be responsible for when a repair or replacement is needed.
– Deductibles: Like with insurance, some home warranty plans have deductibles that you’ll be responsible for paying before the plan kicks in. Make sure to choose a plan with a deductible that you’re comfortable with.
– Flexibility: Look for a plan that allows you to choose your own service providers, as this can give you more control over the quality of the repairs and replacements that are made.
If you’re selling your home, adding a home warranty to your sales strategy can be a smart move. Not only can it increase your home’s appeal and value, but it can also give you and the new owner peace of mind. By choosing the right home warranty plan and transferring it to the new owner, you can help ensure a smooth and successful home sale.