Sellers … Consider a Home Warranty!

8 Replies

Lately, I’ve met with several potential sellers that are all considering selling their home at a time when there’s a lot of inventory on the market, and buyers are having the opportunity to take their time when reviewing properties.  As listing agents we are always looking for ways to set our listings apart from the competition and one way in which to do that is to offer a home warranty.  There are plenty of companies out there that offer great home warranties, including the one that we use in my office, American Home Shield.  It should be noted that I’m not advocating AHS over any other; nor do I receive any financial benefit from recommending their service … there are plenty of other good plans out there, just Google the search term home warranty plans and do the research yourself.  But I DO consider the warranty to be an essential piece of the puzzle when looking at what sets your home apart. 

When you buy a new home, there is a warranty attached to the house guaranteeing that the home’s plumbing, electrical, and HVAC Direct systems will work for at least a 12-month period.  Major appliances will also be covered, so if anything breaks – and it will – during the warranty period then for a small deductible (usually less than $75)  repairs can be made at no additional charge to the homeowner.  But it’s important to remember that not all homes are new, and older homes (for obvious reasons) are likely to need more and more repairs over time … this is why home warranties are something everyone should consider, whether they’re getting ready to sell their home or have just purchased a home with no warranty attached.  Under the plan we use in my office, the seller of the property can put a home warranty on the property that will cover the property for a period of six months prior to closing, and then another twelve months at no cost to the new purchaser – 18 months of coverage for the cost of 12, which usually runs $397.00.  For purchasers of homes without warranties, you can often purchase a warranty outside of closing for the same price, as long as it’s done within a reasonable amount of time from settlement (usually less than 30 days).

An interesting concept, and an added layer of protection when putting money into such a sizeable and profitable investment as real estate.  The real estate website Zillow (which we at NRVLiving.com highly recommend) has a good wiki on the benefits and advantages of home warranties.  Check it out, and whether you’re buying, selling, or just own real estate with no intention of moving, consider a home warranty to protect your investment.

8 thoughts on “Sellers … Consider a Home Warranty!”

  1. Jeremy

    I think Zillow’s product is good, simply for the fact that they’re thorough in the information they provide. I might not always agree with their topics, but information is power and I think consumers should do all they can to be educated. That being said, Zillow currently doesn’t provide any zestimates for our area – they simply haven’t gotten out to our portion Montgomery County yet. They have zestimates for areas like Shawsville & Elliston, but haven’t gotten to us yet and that’s probably a good thing. I don’t consider Zillow a good resource because of their zestimates – I think their figures are skewed and unintentionally misleading – but I do think their topics and articles are often insightful and educating, and I encourage people to take advantage of them. Thanks for asking!

  2. Jeremy

    I think Zillow’s product is good, simply for the fact that they’re thorough in the information they provide. I might not always agree with their topics, but information is power and I think consumers should do all they can to be educated. That being said, Zillow currently doesn’t provide any zestimates for our area – they simply haven’t gotten out to our portion Montgomery County yet. They have zestimates for areas like Shawsville & Elliston, but haven’t gotten to us yet and that’s probably a good thing. I don’t consider Zillow a good resource because of their zestimates – I think their figures are skewed and unintentionally misleading – but I do think their topics and articles are often insightful and educating, and I encourage people to take advantage of them. Thanks for asking!

  5. Jeremy

    Yep, spread the word! You can get a home warranty anytime, whether you just bought it or have owned it for 30 years. And it should be noted that many of the new plans offer 13 SEER Coverage on heat pumps, which means your heat pump will often be entirely replaced with a new 13 SEER unit rather than repaired – 13 SEER is a more efficient unit and now mass produced, making it easier to obtain. JDH

  6. Jeremy

    Yep, spread the word! You can get a home warranty anytime, whether you just bought it or have owned it for 30 years. And it should be noted that many of the new plans offer 13 SEER Coverage on heat pumps, which means your heat pump will often be entirely replaced with a new 13 SEER unit rather than repaired – 13 SEER is a more efficient unit and now mass produced, making it easier to obtain. JDH

  7. John Neel

    Great information J. I didn’t know you could just out and out by a home warranty if you were buying a house.

  8. John Neel

    Great information J. I didn’t know you could just out and out by a home warranty if you were buying a house.

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