Selling Your Home? Don't Forget the Home Warranty!

By
Real Estate Broker/Owner with RE/MAX Action Real Estate

 

If you want to save some money and help make your home more marketable, don’t forget to sign up for a home warranty when your Realtor lists your home.   Your Realtor will be able to assist you in this process.

Some home warranty companies such as First American Home Warranty offer “FREE” seller coverage during the listing period.  Payment of the home warranty occurs at closing, and if a listing never closes, there often isn’t any money collected. With First American, the only money a seller would be out of pocket during the listing period would be for the deductible for a service call.

Seller coverage is an upgrade and some features such as HVAC systems are considered optional coverage items that have additional costs.  Once you have signed up for the warranty, you are covered during the listing period.  If any covered item breaks down, simply call the warranty company and pay their service fee deductible. This is especially handy for covering home inspection items.  First American charges a deductible per “trade” call meaning if there are several electrical items to be covered, there is only one deductible charged.

Home warranties are also a great way to have peace of mind and budget protection.

The cost of a home warranty varies by company and so do services so read the fine print carefully.  In Richmond, Virginia First American starts as low as $365 for basic coverage with a $60 service call fee.  There are upgrades to cover additional items such as HVAC for sellers and other items for buyers. Whichever warranty you purchase, make sure you understand the coverage you are getting.

 

 

 

Comments (12)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I pay $399 for the 2-10 and that covers the A/C and Heating systm for the buyers.

Wouldn't sell an existing home without one.

Good risk reduction for agents too.

Mar 08, 2013 12:32 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Excellent advice...especially with so many international buyers, with different expectations.

Mar 08, 2013 12:36 AM
Ridhi Raheja
Movement Mortgage (Illinois) - Naperville, IL
FHA, 203k, VA, Jumbo, PreApproval, Jumbo Home Loan

Gary thanks for the advice. I think it is fundamental to have one. 

Mar 08, 2013 02:05 AM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

Home Warranties are like preventative health care. It's always a good idea to do it.

Mar 08, 2013 03:43 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Even if the purchase is an REO or short sale where the seller will not be providing a home warranty, I strongly advise my client to purchase one for their own protection.

Mar 08, 2013 10:58 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Interesting -- a home warranty can be a very good investment if the buyer has a little extra cash.

Mar 08, 2013 11:06 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

I recommend a home warranty also. My seller had a Home Inspection done the hot water heater was leaking .It was covered under the warranty. It paid for itself ....It does not get paid for until settlement good investment

Mar 08, 2013 11:13 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Gary, this is a good advice - and for buyers, specifically first time home buyers, if the seller does not provide with Home Warranty, go ahead and purchase at the time of closing. Makes all the difference - true peace of mind.

Mar 08, 2013 01:34 PM
Tom Johnson
Your Castle Real Estate, Inc - Aurora, CO
Military VA Expert - MBA, MRP, CRS - 303-856-6185

Great advise and definetly a great investment for the home buyer. 

Mar 08, 2013 02:25 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Home warranties have helped many of our clients.  We always encourage our sellers to offer them, and our buyers to ask for them.  Good post!  

Mar 08, 2013 08:44 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I'm a huge believer in home warranties and have used them extensively with buyers and sellers for over a decade.  They have saved so many of my clients an awful lot of money.

Mar 08, 2013 09:32 PM
Sammer Mudawar
RE/MAX Prestige - Anaheim Hills, CA
OC Real Estate Blog

I use First American as well and the sellers coverage is a great help to secure those listings, the sellers just love it.

Mar 09, 2013 01:13 PM