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It is most certainly a buyer's market when it comes to real estate sales in our current economic situation. It is taking home sellers even longer to sell their home at the same time. When it comes to choosing homes in a glutted market, sellers undeniably have their pick of the best. When a buyer has so many options from which to choose, how can you ensure your home sells quickly?
Enter: homeowner warranties. A homeowner warranty, known alternatively as just a home warranty, is a strong tool for ensuring buyers purchase a savvy seller's home. Buyers want to know that the quality of the home they're considering purchasing is guaranteed. If that can't be guaranteed, proof that the previous owner will repair anything that breaks during the first year of purchase is desirable. Since a homeowner warranty's main purpose is to give them that assurance, it will ultimately ensure you as a buyer that your home will seller more quickly.
Who pays for the homeowner warranty? This depends on local customs and can vary widely from state to state. In many places, it's customary for a seller to pay for the warranty because the seller is the person who benefits from it. Buyers are less likely to call a seller to replace something that breaks if the buyer did not personally pay for the homeowner warranty.
It's also a relatively minimal sum to buy a homeowner warranty. Depending again on your location and what is specifically covered under the policy, a typical warranty usually costs somewhere between $250 to $400. Each year, the policies need to be prepaid in advance. While policies tend to expire at the end of the first year, you have the option to renew annually.
While a seller may be leery about offering too much coverage and for too long a time period after the home has been sold, there are limits to what a homeowner warranty covers. Unless specific coverage is requested, most outdoor items like sprinklers, spas and pools are not covered, and not every plan pays for indoor appliances either. In addition, coverage can be denied for a buyer's improper installation or maintenance of an item, code violations and unusual wear and tear.
A seller often has great control over the terms of a homeowner warranty, even though the buyer may dictate its existence. There's really no reason not to take advantage of a homeowner warranty, since it has the dual function of putting a buyer at ease and helping a seller's home sell more quickly.
Enter: homeowner warranties. A homeowner warranty, known alternatively as just a home warranty, is a strong tool for ensuring buyers purchase a savvy seller's home. Buyers want to know that the quality of the home they're considering purchasing is guaranteed. If that can't be guaranteed, proof that the previous owner will repair anything that breaks during the first year of purchase is desirable. Since a homeowner warranty's main purpose is to give them that assurance, it will ultimately ensure you as a buyer that your home will seller more quickly.
Who pays for the homeowner warranty? This depends on local customs and can vary widely from state to state. In many places, it's customary for a seller to pay for the warranty because the seller is the person who benefits from it. Buyers are less likely to call a seller to replace something that breaks if the buyer did not personally pay for the homeowner warranty.
It's also a relatively minimal sum to buy a homeowner warranty. Depending again on your location and what is specifically covered under the policy, a typical warranty usually costs somewhere between $250 to $400. Each year, the policies need to be prepaid in advance. While policies tend to expire at the end of the first year, you have the option to renew annually.
While a seller may be leery about offering too much coverage and for too long a time period after the home has been sold, there are limits to what a homeowner warranty covers. Unless specific coverage is requested, most outdoor items like sprinklers, spas and pools are not covered, and not every plan pays for indoor appliances either. In addition, coverage can be denied for a buyer's improper installation or maintenance of an item, code violations and unusual wear and tear.
A seller often has great control over the terms of a homeowner warranty, even though the buyer may dictate its existence. There's really no reason not to take advantage of a homeowner warranty, since it has the dual function of putting a buyer at ease and helping a seller's home sell more quickly.
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