Should Sellers Offer Home Warranties

Dated: 07/01/2019

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If you are selling your home, one of the most common requests with the buyer’s offer is to payfor a home warranty. As a seller, you might be wondering if it’s something that’s worth theexpense. Some agents suggest that the seller purchase a listing warranty as well as part of thesales process. Understanding the benefits of a home warranty is the first step in deciding if it’sworth the cost to you, the seller.

A home warranty is a policy which covers the cost of repairs to a number of critical systems inthe home. While coverage varies, most cover electrical, plumbing, heating, air conditioning, and appliances. Some optional coverage could include pool and spa, roofing and codeprotection among others. In the event that a home buyer has a problem with any of thecovered systems, the warranty would send a service person out to make the repairs for onlythe policy deductible – usually between $65-100 per problem. 

The home warranty provides peace-of-mind to the buyer that if an undetected problem showsup after the close; their out-of-pocket cost is limited to the small deductible. While this doesnot negate the need for a professional home inspection, it can push a transaction to close withbuyers who are nervous about unexpected problems. As an additional bonus, most warrantycompanies offer a free listing warranty which covers unexpected issues during the listing;often saving the home owner hundreds of dollars in repairs arising from the inspection.

Offering a home warranty in the listing is one way to demonstrate to potential buyers that thecondition of the home is important to the seller as well. You take maintenance seriously andthey can rest assured that they are making a good investment.

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Jason McLaughlin

Jason has lived in the Golden and Arvada area for more than 25 years attending Golden High School and then later gaining a Bachelors of Science Degree in Organizational Leadership and Emergency Manage....

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