Most Real Estate Professionals readily accept the benefits that a home warranty provides for a home buyer, and consistently recommend that their clients secure a home warranty when purchasing a home. However, agents may sometimes overlook the benefits of Seller’s Coverage for a client who is selling a home.
While a home is on the market, a home warranty provides repair and replacement coverage for the home’s major systems and appliances, and helps avoid closing delays while providing budget protection for the seller. Having a home warranty in place also provides a competitive edge over other homes on the market, which can help homes sell faster and for a higher price. Buyers feel protected from unknown after-sale problems and are more likely to make a solid offer.
In today’s market, many buyers request that the seller provide a home warranty to reduce the buyer’s risk of unforeseen breakdowns after close of sale. For a minimal cost, the seller can add Seller’s Coverage and receive protection from the breakdown of covered systems and appliances during the listing period. Coverage becomes effective immediately upon receipt of application and continues until the expiration of the initial listing period (up to 180 days), close of sale, or listing termination (whichever occurs first). The per day premium for Seller’s Coverage is payable at the close of sale.
Seller’s Coverage can provide essentially the same system and appliance coverage for the home seller during the listing and escrow period as the standard home warranty does for the home buyer after the close of sale. Some notable differences are:
Optional coverage for certain items such as swimming pool, well pump, limited roof leak repair, etc. are not available to the seller.
Many warranty companies have specific Seller’s Coverage limits on the heating and air conditioning systems, such as a cap on the dollar amount which will be spent on the system.
Most agents and home sellers appreciate that Seller’s Coverage keeps the home showing well, which can result in a faster sale. It may also lessen some of the financial burden on the seller for repairs that may result from the buyer’s home inspection. In addition, when agents ensure that their client’s home systems and appliances are in good working order at the close of sale, their clients are happy, and happy clients mean more referrals!
This article is provided courtesy of Old Republic Home Protection, a leader in the home warranty industry, providing superior service, comprehensive coverage and competitive pricing.
For more information on the value and benefits of Seller’s Coverage or to order a home warranty, please contact local area representative Amanda Wood:
Old Republic Home Protection
(800) 282-7131 ext. 1210