Reasons to Offer a Home Warranty When Selling Your Home

Selling a home can be daunting, considering many factors, including pricing, staging, and marketing. One aspect that often gets overlooked is offering a home warranty. A house warranty can provide peace of mind to both the seller and the buyer by offering protection against unexpected repair costs.

What Is a House Warranty?

A house warranty is a service contract that covers certain home systems and appliances. It typically involves electrical, plumbing, heating, and cooling systems and major appliances like refrigerators, ovens, and washing machines.

Obtaining a house warranty works by selecting a provider offering coverage for the type of home and systems sold. Afterward, the seller will pay an upfront fee to the warranty company. 

Once the payment is processed, the warranty company will issue a contract that outlines the terms of the warranty and what is covered. The buyer will receive the contract and be able to use it to make repairs or replacements to the covered items if necessary.

How Much Does a House Warranty Cost?

The cost of a home warranty varies, revolving around the coverage level and the home’s geographical location. A basic plan costs between $400 and $700 annually, while a more comprehensive plan can cost up to $1,200. Some providers also charge a service fee of around $25 to $125 per claim. 

The Benefits of Offering a House Warranty

1. Attract More Buyers

Offering a house warranty can make your home more attractive to potential buyers. It provides an added layer of protection against unexpected repair costs, giving buyers peace of mind and more confidence in their purchase. This can ultimately lead to a quicker sale and a higher selling price.

2. Stand Out from the Competition

A home warranty can help your home stand out in a competitive real estate market. It shows that you are willing to go above and beyond to provide a quality home-buying experience and sets your home apart from others that may offer something other than this added benefit.

3. Protect Your Home during the Listing Period

A house warranty can protect your home during the listing period. Suppose a covered item breaks down or needs repair while your home is on the market. In that case, the warranty can cover the repair cost, saving you money and preventing potential buyers from being deterred by a faulty system or appliance.

4. Reduce Post-Sale Disputes

Granting a house warranty can also help reduce post-sale disputes. If a covered item breaks down shortly after the sale, the buyer can have it repaired by their preferred service provider. This can prevent potential conflicts and ensure a smooth and stress-free transaction.

Final Thoughts

Offering a house warranty can provide many benefits when selling your home. While it may imply an additional expense, it can save you money by covering the cost of unexpected repairs. If you’re considering selling your home, it’s worth exploring the option of offering a home warranty to provide you, and potential buyers added protection and peace of mind.

Home Membership provides a home warranty to protect buyers and sellers during the real estate transaction. Our plans cover the repair or replacement of major systems and appliances and are backed by a team of experienced technicians. Contact us today!