Today’s home buyers have become more demanding than ever and expect a number of assurances regarding the condition of any home they are thinking about purchasing. Before listing your home for sale, you should pay to have it professionally inspected. This single step adds a certain level of assurance that your home is truly in as good a condition as your listing states. If you want to impress buyers and improve your odds of selling your home at the asking price and in a timely fashion, you should consider offering a home warranty to potential buyers.
What is a Home Warranty?
One of the best ways to describe a home warranty is to say that it is like an insurance policy that provides coverage for specific areas of your home. Exactly what areas of your home will be covered under the home warranty will depend entirely on the type of policy you buy and how much you are willing to pay for coverage.
Once you sell your home, you would be right in thinking that everything on or in it becomes the responsibility of the person who purchased it. While to a certain extent this might be true, it certainly is not the best attitude and in fact thinking this way can come back to bite you. Of course, the buyer can buy this type of insurance, but if you really want your home to sell quickly and for the highest possible price, you should invest in a home warranty of your own and then include it in the sale.
Who Pays for the Home Warranty Policy?
In reality, both you and the person who decides to buy your home have the right to buy a home warranty. Be aware that you do need to investigate the various policies on the market and how much they cost as different areas and companies have a variety of policies and prices. You may also find that depending on the location of your home it may be your responsibility to purchase the policy or it may fall on the buyer to purchase their own policy.
For the most part, the cost of a home warranty insurance policy is going to be tied directly to the market value of your home. At the same time, the cost of the policy is going to vary based on the amount of coverage you decide is needed. In most cases a home warranty policy that offers decent coverage should cost you less than $500. You should also note that most policies do have a deductible that is the responsibility of the person who owns the policy. The higher the deductible on the policy is, the lower the cost of the policy is likely to be.
What Does a Home Warranty Cover?
The average home warranty policy covers major systems in your home, including plumbing, electrical, and climate control systems. You can also add coverage for appliances as a way to help put potential buyers’ minds at ease and improve the chances of selling your home. Bear in mind you should not buy your home warranty until you have had your home professionally inspected and any noted issues have been resolved to ensure you get the right coverage.