The US housing market might be doing fine, but it’s definitely not great. Therefore, sellers need all the help they can get in order to actually sell their property faster and for a better price. A home warranty plan is one of the not well-known ways to achieve that. Being the clever seller that you are, you definitely should study this service carefully so you can use it to achieve your goals. Here is How to Sell Your House Faster Using a Home Warranty Plan.
Why Does Home Warranty Coverage Appeal to Buyers?
According to surveys, on average, properties covered by home warranties sell about 11 days faster. It’s not a surprise that buyers value this kind of protection so highly. Buying a home often is the biggest purchase a person makes in their lifetime. This means they are taking a risk and want to avoid any unpleasant surprises. Few people are so financially secure that they can afford not to worry about additional unexpected expenses. That’s why a home inspection is a standard part of any real estate deal.
The inspection provides buyers with a measure of security because it tells them about any possible risks. However, it doesn’t offer a 100% guarantee that nothing expensive in the house would break down within the next few months.
A home warranty plan, however, ensures the buyer that if something does break, they would be protected. There are certain limitations, of course. However, the very fact that this reassurance exists is enough to make buyers prefer covered properties over ones without a warranty.
Sellers benefit from this type of contract not only because it helps find a buyer faster. It also allows them to make more money on the deal because such properties sell for about $2,300 more. The average cost of a home warranty plan is $400-600 a year. Therefore, you end up with a significant amount in the total balance that you basically get as “bonus money”.
Also, don’t forget that home warranty coverage will help protect you somewhat after the deal. As it will cover the repairs, you should be able to escape angry calls from buyers about something in the house breaking down.
However, you need to understand that in order to get all these benefits, you’ll need to offer a good home warranty plan to prospective buyers. Otherwise, you might be getting those rage calls about coverage that doesn’t work.
How to Choose the Best Buyer’s Home Warranty Plan
Let’s face it, you might be buying a home warranty for appearance’s sake only. But prospective buyers are sure to double-check everything. If they discover that the plan you are trying to present as a worthy boon is nothing but a waste of their money, your “appearance” would be ruined. You might lose a good deal and your chances for another one will suffer if they spread the word on social media.
The easy solution seems to buy a plan specifically designed for home buyers. After all, this type of coverage accounts for their unique needs and will provide better protection. Not every provider has a plan like this, but an impressive amount of companies do. They might also offer discounts and other perks to sellers who are purchasing the coverage. If you are in the real estate business, this could offer some long-term benefits.
But again, you can’t choose a buyer’s home warranty plan on the basis of how it’ll benefit you personally. It’s tempting, but having a stellar reputation with satisfied home buyers offers more benefits in the long run.
To have this kind of reputation, you need to choose the home warranty coverage that will offer the best kind of protection for the new homeowners. To do this, you need to consider:
The home warranty industry is now worth $2.5 billion and has over 180 providers. Those numbers are growing as the service is becoming more popular. However, many of these companies are very untrustworthy and are ruining the reputation of the entire industry. That’s why running a thorough “background check” of the provider should be the first thing you do. After all, you wouldn’t want to work with a company that’s facing fraud charges, right? Especially now, when you can learn about those things in an instant using a simple Google search.
Aside from running the search of news about the provider, you should also study its reviews on platforms like Yelp. This will show you what mostly dissatisfied customers have to say about the company. But remember that people post about negative experiences more often than if they are satisfied.
Therefore, the final level of reputation check is to see the company’s rating and accreditation with the Better Business Bureau. In this industry, only the most reliable of providers are in good standing there.
Plan coverage differs widely in providers, so choose something that would include the specific things in your house. You also need to make sure that coverage limits are reasonable. The limit is the maximum amount of money that the company will pay for repairs.
You should research what the most common breakdowns are for different systems and appliances are and how much they will cost to repair in your area. Assess the coverage limits after doing this research.
Terms and conditions
Many companies in the home warranty industry use obscure and tricky terms and conditions in the fine print of their contracts to deny claims. Therefore, you should study every word of the contract and any other associated paperwork.
You should also pay attention to details like claim filing terms and service call fees. Imagine you are the one who will have to use the coverage. Do you think those terms are good enough for you?
If yes, go for it. But if not, keep looking because you want to offer the best service to your buyers.
Conclusion: Use the Benefits of a Home Warranty Wisely
Making your property more appealing to buyers is a must if you want to sell fast and get the best price. As home warranties offer protection to buyers, folding one into your deal is a wise decision. Just make sure that the coverage you buy will truly benefit the new homeowners. This will help improve your own reputation and benefit everyone involved. You may also want to look into protecting yourself by getting your home move insured to avoid any unexpected expenses that may arise.
Finding Help with Moving Professionals
We hope you found this blog on Sell Your House Faster Using a Home Warranty Plan useful. For more tips, check out this one blog of the Moving Checklist for 2020.
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