Home warranties are beneficial to both buyers and sellers because they guarantee many things.
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Whether we’re representing buyers or sellers during a transaction, we always recommend getting a home warranty because it benefits both parties.
Whether we’re representing buyers or sellers during a transaction, we always recommend getting a home warranty because it benefits both parties.
One of the biggest benefits for buyers is that it gives you peace of mind for that first year of homeownership. After that first year, whether you want to renew it or not is up to you. Rest assured, though, that if something goes wrong, if it’s covered under the home warranty (which a lot of things are), you’re going to be able to budget for it because you’ll only need to pay the deductible.
The benefits for sellers are more numerous. For one thing, getting a home warranty guarantees that the buyer isn’t going to come back and try to pawn off another repair cost after they’ve already settled on the home. They can also purchase a home warranty for the buyer if it’s negotiated that way.
In addition, home warranties are a great selling point because buyers don't have to purchase one on their own. Sellers can then opt to have coverage during the time period between when they go under contract to when they close if anything should go wrong then.
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Home warranties are both a selling
point and a negotiating tool.
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point and a negotiating tool.
Finally, home warranties are a great negotiating tool. If the inspection is done and the inspector declares that some appliance is at the end of its useful life, for example, you can offer the buyer a home warranty instead of negotiating a price for that item.
Though there are many different companies throughout the U.S. that offer home warranties, each company only covers certain regions or states. Only certain warranties can be bought in particular states. In our area, the primary home warranty companies are First American and American Home Shield. Both of them have their advantages and disadvantages. Which company is best for you depends on what type of coverage you’re looking for and the price and value you want to get out of that.
If you’re thinking about buying or selling a home, please call or email me today for a free real estate consultation. I look forward to hearing from you.
If you’re thinking about buying or selling a home, please call or email me today for a free real estate consultation. I look forward to hearing from you.
