No doubt about it, home warrantees offer peace of mind for home buyers, home sellers and even the real estate agents. Buying and selling a home can be the most stressful time period in a person’s life. It is full of decisions and many people will second guess themselves or have doubts regarding making the best decision. A home warrantee shifts the risk of future repairs to the warrantee company so everyone sleeps better.
Sell Faster, for More Money
A study from the Service Contract Industry Council (SCIC), reported homes sell for $2300 more and 16% faster with a system and appliance warrantee than homes without a warrantee.
A property with a home warrantee is more attractive than a similar property without one. Even after the most thorough home inspections, there is no guarantee that issues won’t appear after closing. Many times, buyers are using much, if not all, their savings to purchase the home. The fear that something may break or need repair after they move in can lead to some sleepless nights.
Home sellers and real estate agents who purchase a home warrantee for a property for sale will attract more buyers by eliminating one potential objection. Many times, the warrantee also covers the seller while the home is listed and available for sale; providing valuable protection without delays in the sale process. Buyers who may be stretching funds to purchase a home tend not to consider diverting funds to purchase the warrantee on a subject property, but should. Especially first time buyers, who are accustomed to calling on a landlord for repairs will have a trusted source for repairs and minimal out of pocket expense.
A home warrantee provides a competitive edge in a buyers’ market, especially when competing homes are similar in age, construction and amenities. Homes under warrantee suggest the homeowners care about the home and have maintained it well during their ownership.
Ideal for Older Homes
Many buyers prefer older or historical homes but fear the potential repair costs. Warrantees can be purchased for homes of any age and will cover the appliances and systems as long as they were in working order when the warrantee is purchased. This will eliminate the fear buyers may have about a home with older appliances and systems. An older home with a warrantee can compete with new construction with the same reassurance. Some buyers prefer the mature trees and other aesthetics of established neighborhoods above the sterility of new construction.
Sellers may want to offer a home warrantee to cinch the deal when negotiating. If a buyer is looking for a price concession due to the age of the appliances or concerns from a home inspections, offering a home warrantee will go far to calm the fear. Sellers can purchasing a home warrantee for a few hundred dollars versus thousands asked by the buyers in reduced purchase price.
Protects, Buyers, Sellers, Realtors, and Other Parties
A home warrantee can be purchased by the buyers, sellers or even the real estate agent to help a transaction move smoothly and quickly for a higher sale price. It provides protection from surprise breakdowns before, during and after the sale. It can even aid in mortgage approval by reducing the risk the buyer may face unknown repair costs. This gives all parties peace of mind.
If a system or appliance breaks, none of the parties have to suffer a large out of pocket cost and only a small deductible needs to be paid. A home warrantee can avoid disputes regarding seller disclosures. Should something break after the sale when a warrantee is in place, there is no reason to litigate to recover the costs as the home warrantee will cover the majority of the expenses.
Let Eillu help you sell your home faster for more money. Home warrantees are only one of the tools is our tool box. Talk to an agent today to get a custom market evaluation and view our sales presentation. Yes, you can expect more with Eillu!