Why You Should Provide a Home Warranty When Selling Your House

Home warranties can provide prospective buyers with additional peace of mind and serve as an effective marketing tool for your upcoming home sale. In addition, if something goes wrong during the sale of your homes, such as a roof leak or a basement flood, your home warranty will assist you in rapidly resolving the issue and restoring the home to its selling condition.

Here is everything you need to know about home warranties, including what they are, what they cover, and why you should provide one when selling your home.

What Does a Home Warranty Cover?

A home warranty is an insurance that covers all or a portion of the costs associated with a malfunctioning appliance or mechanical system in the home. Home warranties are typically 12-month contracts that cost homeowners between $25 and $75 each month, plus service fees whenever a professional is required to repair or replace an item.

When comparing homeowners insurance to a house warranty, insurance covers structural issues and the home's contents, but not necessarily appliances or systems such as the HVAC. You can tailor your home warranty policies according to the type and quantity of coverage you choose.

How do home warranties operate?

A house warranty prevents you from paying full price for home repairs or replacements in an emergency. For instance, if your dishwasher malfunctions, you file a claim with your home warranty provider. The warranty company will then coordinate the inspection and repair of your item.

Typically, you must pay a minor price for the service call, known as a "trade call fee," which ranges from $50 to $100 on average. However, instead of paying for the repairs, your home warranty company pays for them.

The Advantages of Offering a Home Warranty When Selling a Home

A home warranty is major benefits if you are selling your property.

Calmness of Mind

Since you pay a monthly deductible, the service visit fee is the only expense you need to consider when problems emerge. Fewer unplanned expenses equate to less stress, which may be a tremendous relief during the selling process. You can also add a seller's warranty to protect you while your house is on the market, and most businesses provide this service at no cost.

Incentive

A house warranty sweetens the sale for buyers because they are protected for a specified period after the purchase. If your house is identical to others that prospective buyers are evaluating, a home warranty may sway them in your favor.

Transferability

Before listing your house for sale, if you have a home warranty, you can transfer it to the buyer through a straightforward process and for a minimal charge, often $25.

Prevents Post-Sale Problems

If a home component covered by the home warranty requires repair shortly after the purchasers move in, they can work with the home warranty company to address the problem. A transferable house warranty is a simple solution to prevent appliance or system-related disputes after the sale.