Is a Home Warranty Necessary in a Sellers’ Market?
Some people consider incentives during a Sellers’ Market unnecessary. But offering a home warranty does have some significant benefits. The seller receives some coverage while the property is on the market and under contract. This usually covers major appliances or home systems. Want to know more about home warranties during the sales process? CLICK HERE for a discussion about home warranties during the sales process.
A home warranty alsoprovides an added level of “peace of mind” for a buyer. It increases the comfort level for the buyer because they have protection from unexpected “out-of-pocket” expenses. Furthermore, the buyer may be relieved that they will have access to a range of qualified repair vendors with a single call to the warranty company. This may help expedite the transaction.
And even when the property doesn’t sell more rapidly, a warranty can reduce negotiations and the need for multiple inspections. Warranty protection is like a vote of confidence for the property.
Additional Benefits of a Home Warranty During the Sales Process
Should there be any issues, the warranty company sends out a professional to address the situation. This relieves the seller from finding a service provider.
Having a “disinterested” third party handling the problem helps remove suspicion from buyers that the cheapest solution was used for any repairs.
You can set it up so any premiums come from the seller’s proceeds at closing. This negates any “out-of-pocket” expenses during listing and closing.
As you can see, having a home warranty in a sellers’ market has benefits for both buyer AND seller. Your real estate professional can recommend and arrange a home warranty provider for you.