Should I Offer Buyers a Home Warranty When Selling My House?
Offering a home warranty when selling your house can make it more attractive to buyers and help protect you post-sale. Here's how.
As you prepare to sell your home, you want to take all necessary actions to ensure it’s attractive to prospective buyers and also assessed at its truest value.
One way to make your home’s listing stand out — and help prevent post-sale issues — is by offering buyers a home warranty with the purchase of the home. Here’s all you need to know about offering home buyers a warranty when selling your house.
What is a Home Warranty?
Not to be confused with a homeowner insurance policy, a home warranty is a policy that protects the appliances or mechanical systems in your home. A home warranty policy covers either a portion of or all costs in the event of an appliance breaking or the failure of a mechanical system.
Home warranty coverage varies by plan type and company. Like any insurance policy, you’ll want to compare quotes and coverage offered.
How Does a Home Warranty Work?
A home warranty is typically a 12-month duration, with a monthly fee paid by the homeowner. In the event that a system or appliance breaks, you file a claim, and the home warranty company will send a dedicated technician to assess and diagnose the issue.
So long as the issue is covered by your warranty, the policy can help pay for repair or replacement of what’s broken.
What Does a Home Warranty Cover?
A home warranty typically covers the following:
- Plumbing repairs, such as toilets or garbage disposal issues
- Heating and cooling, like ductwork or HVAC repair
- Electrical issues
- Appliances like water heaters, dishwashers, and stoves
Without a home warranty, these repairs or replacements can be extremely pricey, time-consuming, and frustrating. Sourcing a vendor or attempting to do it yourself can add to these issues. The protection of a home warranty offers peace of mind for a homeowner, which can make it an attractive add-on for your prospective buyers.
Can a Home Warranty Add to the Value of Your House?
As you prepare to sell your home, you’ll want to be thorough in assessing the condition of your home. Thankfully, this is where your home warranty can come in.
Since a home appraisal is a key part of the selling process, you’ll want to make sure your home is well-prepared. If you encounter any home repairs or replacements that are needed, the home warranty can either partially or fully cover them. This can reduce your own out of pocket costs, while ensuring your home is up to date.
In turn, the value of your home can be at its most accurate, which can be helpful for the home appraisal process, as well as make it more attractive to buyers.
Will Offering a Home Warranty Make Your Home More Attractive to Buyers?
By default, home warranties are easily transferable from a seller to a buyer. You can consider leveraging your home warranty as a marketing tactic and discuss its inclusion in the listing and selling process with your trusted real estate agent. Offering a home warranty can help give buyers peace of mind that any repair or mechanical issues are covered.
You can also rest assured that a layer of protection is added in the post-sale process with a home warranty offered to buyers. Repairs and replacements can be taken care of during the listing process, and anything missed can be handled by the buyer without issue, helping to mitigate post-sale problems.
By offering buyers a home warranty, you can add another incentive to the sale of the home. Adding any additional attractors can help move the needle to get a deal over the line and successfully sell the home.
It’s a Seller’s Market — Do You Really Need to Offer a Home Warranty?
In short: it depends.
Despite being a market where you have the upper hand as a seller, it can be a great incentive to offer a home warranty to prospective buyers, helping push an even quicker sale. It’s also a layer of protection for you as a seller after the sale has completed: any repairs needed can be taken care of between the buyer and the warranty company.
The protection alone is reason enough to seriously consider offering a home warranty, though the benefit of an even speedier sale is a plus. Though it’s not strictly necessary in a seller’s market, offering buyers a home warranty can give you a competitive edge against other sellers in your area.
If you aren't sure whether or not a home warranty would be right for your home sale, connect with a top agent today through RealEstateAgents.com who can offer you guidance and support.
