Does a Home Warranty Increase the Odds of Selling Your Home?

by Andy Jones on February 10, 2012

Does your home insurance policies include things like plumbing or electricity failures? It most likely doesn’t. What will you do if something goes completely wrong in the home after you’ve successfully closed the sale? Even worse, what if something goes completely wrong after the buyer has already moved in? You could end up paying thousands of dollars to have the problem fixed.

Don’t feel that just because ownership of the property has transferred from you to buyer how the buyer won’t come to you if you have a major home failure. Imagine in case your brand new vehicle malfunctioned within times of its purchase. Would you pay for repairs without word for the dealer? Of course, you wouldn’t. Neither will your buyer if there is a problem with the home after closing.

As a for sale by owner home seller, you are able to benefit from the purchase of a seller’s home warranty. Not only can it cover the cost of repair in the case that a major home item fails, it can also make your home look more attractive to buyers. Prospective buyers will be pleased with the assurance that comes from a home warranty.

The very last thing you want is to require the pressure of dealing with a surprising failure in your home after you have successfully closed the sale. Deciding whether you or the buyer is responsible for paying for the damages could result in a heated debate. Even inside the unfortunate event of a home failure, this can be avoided type of situation when you purchase a seller’s home warranty.

Essentially, your home warranty picks up where insurance plan leaves off by paying for failures in stuff like heating, plumbing, electricity, and ac. Be advised that the warranty only covers these items if they fail on their own. Improper installation or maintenance, code violations, and unordinary wear can lead to a denial of coverage. Even without a home warranty, the purchaser could not reasonably ask you to cover damages which were caused by actions taken on their part.

Depending on the provider, seller’s home warranty coverage will vary. Make sure you carefully study and grasp the policy you are purchasing before you decide to pay for it. In some cases, the property warranty might cover different items before the closing.

Generally, the home warranty can last for a year. Buyers are given the possibility to renew the warranty coverage in the event it expires. Be sure to advise your buyer that this cost to renew the insurance policy might end up being over the initial cost of the protection.

One of the good things with regards to a seller’s home warranty is that it can be included as one of the closing costs. You can obtain the warranty after which defer payment until closing, receiving the benefit of the warranty without paying for it until later. The benefit for paying for the seller’s home warranty on your own is that you have peace of mind having the buyer won’t have to phone you about an unforeseen problem after closing.

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