Before deciding to purchase one, be sure to consult your real estate agent and research companies by reading online reviews, company websites, sample contracts and BBB ratings.
Home warranties provide financial protection for appliances and systems in your home while it’s up for sale or under contract, but what will the costs be? To learn more than the basics, check out this article: https://www.cinchhomeservices.com/faq-library/-/faq/do-you-need-a-sellers-home-warranty
Cost
Many real estate agents recommend home warranty companies with excellent reputations, or you can ask friends and family for recommendations. Once you have a list of potential providers, compare rates and coverage. Also review reviews of providers online as well as company websites; some even offer monthly plans which make the cost of sellers home warranties more manageable.
A sellers home warranty provides protection should an appliance or system break during the period between listing the house for sale and closing. Such policies can help shield sellers from costly repairs while providing an advantage in negotiations with potential buyers.
Most home warranty providers allow the warranty to be transferred directly from seller to buyer upon closing of sale, thus minimizing seller costs and providing potential buyers with incentives to buy their home quickly. Some even give an added year warranty as an added incentive!
Coverage
Offering home warranties to prospective buyers can make the deal even sweeter. They ensure that if a furnace blows up before an open house or the refrigerator breaks on closing day, they aren’t left footing the bill themselves.
Real estate agents may recommend specific home warranty providers based on their experience, while you can also search online to locate one by reading reviews, sample contracts, company websites or company reviews. When making your selection online be sure to choose a plan which covers both large and small appliances along with home systems before comparing rates and coverage options before making your final purchase decision.
Seller’s home warranties typically incur one-time fees that are added into the sales price or deducted from proceeds of sale, with their cost typically being passed along to buyers as part of a transferable warranty. Furthermore, some providers also offer monthly payment plans so as to make them more cost-effective for sellers.
Exclusions
Home warranties may seem like protection for homebuyers, but they can also provide sellers with immense benefit. When listing their property for sale, home sellers may not anticipate that pipes may start leaking or the kitchen outlet might blow – especially with older properties that have not been properly maintained – which could cost thousands in repairs and prevent the sale. By having a sellers home warranty in place, property sellers can cover some or all of these expenses from unforeseen breakdowns and potentially help ensure an easier process when selling their property.
As with any warranty policy, homeowners warranties do not cover everything that could possibly come up. Therefore, it is vital that any potential buyers thoroughly read over the policy documents to understand exactly what items and services will and won’t be covered. Furthermore, sellers can transfer the policy directly to buyers as an extra peace of mind during closing process and facilitate quicker transactions.
Transferability
Home warranty companies frequently allow sellers to transfer their policies directly to new homebuyers once the home sale closes, making the transition simple and speeding up the closing process. This feature can act as an incentive for potential home buyers and speed up closing times significantly.
Financially, home sellers should be wary when listing their house for sale and closing on it; repairs and maintenance costs often outstrip what the seller can afford to spend on their new property.
Home warranties provide peace of mind to both buyer and seller during this stressful process. Sellers can feel assured their investments will be protected, while buyers can move into their new homes without fear of expensive appliance repair bills. A quality home warranty should provide coverage that is both cost-effective and transferrable – the perfect home warranty will provide peace of mind to both parties involved!