How a Seller’s Home Warranty Benefits Real estate in Portsmouth VA
Home warranties are an important part of real estate in Portsmouth VA. Most sellers believe that the home warranty only benefits the buyer and hence they have little inclination to get one. That is not quite the case. The seller also benefits from a home warranty.
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The seller’s warranty is basically the same warranty that the buyer gets after completing the purchase. The only difference is that the seller’s home warranty is intended to cover the home while it is on the market. It is then transferred in the name of the buyer.
It makes great marketing sense to offer a warranty to the buyer. The seller’s warranty will also cover repairs while the property is on the real estate Portsmouth VA market. Here are some more reasons to have a Seller’s home warranty.
Why is it important to offer a warranty?
The home warranty protects the buyer so why should the seller get one? Well, when you offer a warranty, you are giving buyers more confidence in your property. A home is a major investment and most buyers want to know that they are protected.
Besides, most buyers have to cough up their last penny to make the down payment and to meet other expenses associated with purchasing and moving to their new home. The last thing they want to encounter is a major repair or replacement immediately after moving in. The warranty gives them peace of mind. If something goes wrong under a warranty, the buyer can approach the company for repairs. This actually protects the interests of the seller.
A great selling point
A seller’s home warranty costs several hundred dollars, but it makes your home more appealing. Many buyers will ask for one anyway. If you already have one, you can advertise it up front. If your listing is backed by a guarantee, buyers will assume that it is in a better shape.
In addition, during the due diligence period, the buyer will get the home inspected and they will most probably receive a long report that mentions potential and current problems in the house. At least some buyers will insist that the seller should replace some of the faulty or aging components before closing. And if you refuse, they might just walk out. If you have a seller’s warranty, you will not have to replace items that are still working by simply stating they are covered in the warranty. A home warranty is unlikely to cost much more than a costly repair or replacement.
What items are covered?
While getting a home warranty, both the buyer and the seller should know what is covered. Generally speaking, the seller receives less coverage than the buyer. Buyer plans tend to come with options for enhanced coverage and upgrades. Of course, they also cost more.
In any case, don’t expect the warranty to cover every damage or repair to your home. A home warranty, after all, is not the same as a homeowner’s insurance.
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