Homes with a warranty sell faster, but why? Let’s look into this phenomenon and see what you and your sellers need to know about home warranties.
Home buyers are Becoming More Sophisticated
In recent studies, home buyers have clearly demonstrated that they have a base knowledge of the difference between home systems and appliances services agreements (commonly known as home warranties) and home insurance. These studies have demonstrated that homes sold with a home warranty spend an average of ten days less on the market and sell at a sales price that is on average more than $2,300 higher than equivalent homes lacking a warranty. Sellers should keep in mind that the number is almost four times the average price of a home warranty. In short, everybody wins when a home warranty is involved. The seller gets more money, the buyer gains greater peace of mind that a major appliance won’t break and you gain a higher sales volume for your real estate brokerage.
Home Warranties are a Marketing Tool
Just like sophisticated Instagram pictures, online tools like Trulia or Zillow, or professional home staging, offering a service agreement is an essential tool to help your clients’ homes stand out in the market. Because home warranties are transferrable, they can be used to protect the seller from an unexpected repair during the closing process and give the buyer peace of mind. Keep in mind that the buyer may have dropped the majority of their cash on the sale and closing fees. Knowing that if something major fails, they will only have to pay a minor fee to have a system or appliance replaced, can make a world of difference to a home buyer who’s on the fence about a particular home.
Home Warranties offer a Competitive Advantage to Real Estate Professionals
By understanding the pricing, process and value of a home warranty, you are demonstrating to both your seller and a potential buyer that you have a sophisticated knowledge of how a home’s systems work. If a buyer is looking at two or more properties that are about the same in terms of square footage, location, value and price, the inclusion of a home warranty can tip the balance in the buyer’s decision. Homes that offer a warranty are not only going to sell faster and for more money, but they will also carry a better resale value down the line because the homeowner will have invested in regular maintenance in addition to necessary repairs and replacements.
A Home Warranty Service Agreement can provide comfort, because they know that they’ll be protected from any unseen problems. Your seller clients can even protect their homes while they’re being listed. Visit 2-10.com to find out more!
