We recently talked about how to increase your home’s value when selling it. Not only can you increase its value by adding curb appeal or doing minor renovations, you can sell your house faster for more money if you sell it with a home warranty. According to a study completed by the Service Contract Industry Council last year, homes with home warranties sell for almost $2,500 more and 16% faster.
Now that you know a home warranty can boost your home’s value immensely, it’s time to ask the question: why? There can be a few different reasons! Of course, there’s the obvious – it provides peace of mind, but it also has to do with how easy it is for the new buyer to get their systems and appliances protected!
Home Warranties Provide Peace of Mind
Repairs are often expensive and not planned for- nobody wakes up in the morning saying, “I think my furnace is going to go out today! I’ll go buy a new one after work.” When a new homeowner moves into a home with previously used appliances, it’s often a worry that something will fail. A break down adds an expense to a homeowner who has just bought a new house and is probably feeling like they don’t have much money to spare.
A home warranty provides peace of mind for this homeowner. Provided home systems and appliances were working when the contract went into effect, a home warranty will protect any covered item that fails from normal wear and tear. New homeowners like this added security of knowing they will only have to pay $60 for a repair or replacement of their oven, air conditioner, furnace, electrical system and more. In fact, so many buyers enjoy this peace of mind that in 2014, approximately 90% of real estate sales in California included a home warranty plan.
Home Warranties can be Purchased for Buyer
Some sellers purchase home warranties for their buyers to speed up the selling time and increase the value of their home. This could be agreed upon by the buyer and seller before closing, or offered with the sale of the home. When a home warranty is purchased by the seller for the buyer, the buyer doesn’t have to pay anything except service call fees for a year. This can be an extremely attractive selling point to a buyer! Free coverage for systems and appliances and all the buyer has to pay is $60 for repairs or replacements if something fails from normal wear and tear.
Free Listing Coverage
Another reason why a home warranty sells a house faster is free listing coverage. This is a lot like purchasing an actual home warranty contract to be included in the sale of a home, but it’s free. A seller can sign up for 6 months of listing coverage at no cost. This listing coverage is at a standard package, and has a limit of $1500. Repairs and replacements from failure from normal wear and tear are covered, as long as the seller pays the $60 service call fee. At closing, a seller can transfer this warranty to the buyer for an additional 12 months of coverage.
Click here to learn more about listing coverage.
Home Warranties are Transferable
If you already paid for a home warranty on your home, you can advertise that as well to sell the house faster and for more money. As a seller, you can transfer the remainder of the contract to the new buyer.
How to transfer your home warranty contract to a new owner:
In order to transfer your contract to the buyer, you just have to call the home warranty company and let them know who has purchased the home. You will have to pay a $25 transfer fee to move the contract from your name to theirs.
If you’ve already purchased a plan for your own home and instead of transferring it to your buyer, you want to transfer it to your new home, Landmark lets you cancel your current contract and then put the refund money toward your new home’s contract. Or you could keep your contract on the home you’re selling and transfer it to your buyer, and purchase a house that comes with it’s own home warranty coverage. Most of the time you’ll get real estate pricing if you go through your Realtor or buy it within 30 days of purchasing your new abode. Landmark will let you cancel your current contract, and use the money you’re refunded to cover your new home.
For more information about Landmark, go to our main page here.