A lot of time when I am working with buyers to purchase a home one thing we might ask for when negotiating inspection objections is for the seller to purchase a home warranty for the year. Home warranties range from $300-$600 and cover electrical systems, heating and cooling, plumbing systems, washer and dryer and lastly, kitchen appliances such as oven, range and garbage disposal. A lot of the time, instead of asking for sellers to fix items in the house or buy new items, this is a great way for buyers to protect themselves if a big item should come up in their first year owning the house.
While this is a great thing for buyers to have, it is also a great thing for sellers to have. Now why would a seller who is leaving a house want to buy a home warranty? Well there are a few reasons, one, they can actually then pass the warranty along to the buyer once they get to closing table. That can be a great incentive with buyers and go a long way during the buying process. But the main reason a seller should have a home warranty while they are selling their home is because if anything should happen to the house starting the day the list the house until the day they pass the keys off to the buyer, the home warranty would cover it. And we’ve all been there when during the month of closing a seller has a pipe burst or an appliance stops working and the last thing a seller wants to do is have to buy a brand new appliance or pay for more work on the house they are working to move out of so I recommend that if you are selling your home and do not have a home warranty to get one.
Now if you are selling a newer home that has been built in the past few years, you might not need one. But that is completely up to you. With older homes, I would definitely recommend sellers purchase a home warranty because at the end of the day, things are bound to break and many companies don’t differentiate between newer and older homes in terms of costs so it makes purchasing a warranty cost-effective if you are purchasing an older home or selling an older home.
If you have any questions in regards to home warranties, contact me today and let’s grab coffee to chat about your options while selling your home!