A listing that offers a home warranty presents a win-win for all parties. Sellers can use this attractive marketing tool to give buyers added assurance and confidence in their purchase by offering protection against failures in the home’s systems and appliances.
Not all home warranties are the same, however.
Sellers should be careful to educate themselves about the differences in cost, coverage and policy owner feedback among the various companies that offer these contracts. These basic warranties may cost $250 to $500 for one year, but that investment is well worth the return when a confident buyer makes an offer.
Even if the seller does not offer such a policy, buyers are able to purchase one themselves, if they wish. Visit websites such as HomeWarrantyReviews.com to check reviews and ratings with the Better Business Bureau. Or ask your agent to recommend three companies, and then you can comparison shop.
It’s also important to pay attention to what fees, if any, are charged for the service calls and what exclusions may apply. All warranties offer a “basic coverage” policy, and you can often upgrade. For an additional fee, you can include additional systems, appliances, a pool and spa, etc., that are not included in the core package. One other rarely utilized aspect of home warranties is that they can be renewed year after year — often a wise investment.
Chances are that the listing Realtor and the buyer’s Realtor will have a list of recommended companies that offer these warranties and will have worked with many buyers and sellers in the past who gave them feedback. Don’t be afraid to ask — we are here to help!
— Paul Suding, a real estate agent with Cool Santa Barbara Homes and Village Properties, is president of the Santa Barbara Association of Realtors. He can be contacted at .(JavaScript must be enabled to view this email address) or 805.455.8055.
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