The Galligan Team prides itself on educating consumers, so they can make informed decisions during the home buying or home selling process. To further educate, today we are going to shed some light on home warranties and the benefits of investing in one.
We just wrapped a meeting with our colleague and home warranty guru, Andrew Mertz of America’s Preferred Home Warranty Inc (APHW). As Realtor’s, we are trusted by our clients to educate ourselves in the ever-evolving world of Real Estate so that we may protect and educate you, the consumer. We have touched upon home warranties in the past when suggesting things to do to get your home sold faster or to protect yourself when purchasing a home. Today we are going to delve into specifics based on industry studies as well as specific warranty information provided to us by APHW to give you a better understanding of the facts and how they will benefit you whether buying or selling a home.
So, lets dive right in!
A home warranty can be purchased on resale properties or new construction (although, most newly constructed homes come with a gamut of warranties because everything is newly installed, never been used etc.) and protect the homeowner during the duration of the coverage for a host of potential issues. Depending on the specific package everything from HVAC to your washer/dryer may be covered.
Let’s break down the benefits of a home warranty for a home owner SELLING their home:
As a home seller, adding a home warranty gives your listing a competitive advantage when competing against other comparable homes in your area. It shows that you stand behind your home to help potential buyers feel confident at decision time. Studies show that homes listed with a home warranty generally sell for more money and are on the market for a shorter amount of time
A Home warranty is a great incentive for buyers: If you’re planning to sell your home, a home warranty can instill confidence in buyers. You can highlight that your home has carried a home warranty, so repairs have been completed on time and in a satisfactory manner and give new homeowners peace of mind that they’ll be covered if anything goes wrong. You’ll also likely see a bump in your sales price: the Service Contract Industry Council reports that sales prices are 3% higher on average for homes with warranties.
…….homes covered by protection plans spend almost 11 fewer days on the market on average and sell for more than $2,300 higher on average than homes sold without a home warranty. The ability to transfer a home warranty to new owners helps create added incentives for buyers.
With housing sales increasing amid the economic rebounds, home warranties make sense to help increase the home’s marketability, Meenan said. The resale benefits are in addition to the primary reason homeowners purchase warranties: the peace of mind that comes from knowing the extra protection will cover everyday breakdowns due to defects or even normal wear and tear during the life of the contract. When a problem does arise, contract holders know they can request service around the clock.
Another added benefit extended directly to the consumer by America’s Preferred Home Warranty, INC is something called “ LISTSECURE” which is an incredible program that protects you, the seller. If you add their warranty when you first list your home, you have coverage at no additional cost. It provides you with two years of additional legal protection, up to one thousand dollars to cover attorney fees on post-sale disputes (as long as the home warranty is still active at closing. **)
Let’s break down the benefits of a home warranty for someone BUYING a home:
When buying a home, there are a ton of moving parts and equal parts confusion and stress! Unless you are buying new construction, you are looking at a resale with used systems and equipment which only adds to the great unknown! Have they been well maintained? How old are they, will they last etc. With a home warranty, you have security that should something fail (and let’s face it, these things happen every day!) your warranty will pay towards those repairs making it an effective tool for managing your yearly repair budget.
With America’s Preferred you also have control over which contractor you use! Unlike most home warranty companies who dictate who you can and can’t use, APHW lets you use a contractor you know and trust. They just need to verify that the contractor you are enlisting to make that repair is a licensed professional (licensed in the field of the repair you need. This is to make sure a licensed roofer isn’t trying to repair your boiler!)
With their award-winning customer service, (APHW has won best regional home warranty company in the US by homewarrantyreviews.com) you can reach a customer service representative 24/7/365! (Yes, even holidays)
Home warranties might sound “gimmicky” …until your furnace goes, three days after closing, on a holiday weekend….(catch my drift?) I have shared my personal experience with my own home warranty, that I still have and use more often than I would like but it has saved my tush more than once. Purely as a consumer, I swear by home warranties!! One appliance goes, and the warranty pays for itself right there.
Always do your research and check out trusted sources when fact finding so you can make an informed decision. As a Realtor and a consumer, I highly suggest purchasing a warranty or negotiating one into your sale if possible to protect yourself as much as possible. The more variables you can lock down during the process, whether selling or buying, the better you off you are!
We want to hear your experience with home warranties! Shoot us an email and let us know what you think and if you feel it’s worth it in the end!! firstname.lastname@example.org
Disclaimer: not all home warranties are created equal. Each program differs from company to company. For the sake of today’s post, we are talking specifically about coverage through America’s Preferred Home Warranty, Inc.
**Terms and conditions apply, for more information please contact APHW directly 800-648-5006).