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Homeowner Warranties: The Benefits They Provide In Helping You Sell Your House Fast In An Unsecure Market

By
Real Estate Agent with RE/MAX Alliance

In our present economic situation, it is most certainly a buyer’s market when it comes to real estate sales. Despite this, house sellers are having trouble selling their houses quickly. Buyers have the pick of the crop, so to speak, when it comes to selecting homes in a glutted market. Buyers have so many choices available to them in terms of homes on the market that you might begin to question how you can ensure a speedy sale on your own home. That’s where a homeowner warranty comes in. A homeowner warranty, known otherwise as just a home warranty, is a powerful tool for making sure that a buyer purchases a knowledgeable seller’s home. A guarantee that the house they’re considering purchasing is in good shape is precisely what buyers want. Barring that, they often want assurance that any defects that subsequently occur within a year of purchasing will be taken care of by the prior owner. Since a homeowner warranty’s main purpose is to give them that assurance, it will ultimately ensure you as a seller that your house will sell more quickly.

Is the cost of a homeowner warranty compulsory on the buyer or the seller? Sometimes local customs dictate, but ultimately each state has their own general guidelines. It makes sense that a seller would shell out for the warranty in many areas, because selling the house more swiftly as a result is a benefit that the seller receives. Buyers are less likely to call a seller to replace something that breaks if the purchaser did not personally shell out for the homeowner warranty.

It’s also a relatively minimal sum to purchase a homeowner warranty. It depends entirely on where you reside and what you have decided to be included in the policy, but most warranties usually cost somewhere between $250 to $400. Prepayment ahead of time is requisite on the policies. While policies are likely to expire at the end of the first year, you have the option to renew annually. A seller doesn’t have to worry about either covering too many things or offering coverage for too long of a time period after the sale of the house, because limits are set in place as to the warranty’s definite coverage. Not every plan pays for indoor appliances, and most outdoor items like sprinklers, spas and pools are not covered unless a buyer explicitly requests coverage. In the event that a buyer has improperly installed or maintained something, has violated a policy or creates abnormal wear and tear, coverage can also be denied.

Even though a buyer can often require a homeowner warranty in a market like this, you as seller have a lot of control over the actual content of the warranty. Since it has the dual purpose of putting a buyer at ease and helping a seller’s house sell more quickly, there’s really no reason not to make the most of a homeowner warranty.

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Posted by

Greg Smith

www.boulderhomesource.com

Team Honeycutt
Allen Tate - Concord, NC

Homeowner Warranties should help sell a home by offering the new buyer a secure feeling in the event he has problems.

Sep 30, 2010 09:37 AM
Kathy Denworth
BHHS Keys Real Estate - Islamorada, FL
Realtor in the Florida Keys, Islamorada, Key Largo

I agree, I prefer a home warranty over and inspection, especially in Condos where the association is responsible for the major stuff. An inspection gives a moment in time, a warranty give you peace of mind.

Sep 30, 2010 09:38 AM
Sherilyn M. Whistler
ERA Herman Group Real Estate-NoCo - Loveland, CO
Need a Referral, Call Me !

Greg - I actually had an offer on my listing wherein the Buyer's stated as part of the contract that the Seller WILL provide a home warranty. No problem, she did but that is not a bad idea if there isn't one on the property already. Of course this doesn't help so much in short sales but maybe an offer to split the cost with the listing agent in those situations.  

Sep 30, 2010 10:05 AM