As home prices begin to rebound - as much as 9.7 percent this year by some estimates - more home sellers are purchasing extended home warranties (also called service contracts) to give themselves a competitive edge.
Securing your home with an extended warranty is a great way to set yourself apart from other sellers. Buyers seek out homes that are covered by an extended warranty because it can potentially save them thousands of dollars in post-sale home repairs.
Home warranties provide a measure of financial control if a homeowner is confronted with unpredictable circumstances. Investing in a home warranty can save money, provide comprehensive protection, offer stress-free repairs, and protect a homeowner's emergency fund.
For home sellers, purchasing a warranty offers these additional benefits:
• Sets the home apart from others. Studies show that the vast majority of buyers prefer to buy a home that is covered by a warranty.
• Attract first-time buyers. Some first-time buyers can be intimidated by the costly nature of fixing or replacing systems and appliances. Having a warranty can help put their minds at ease.
• Avoid closing delays. A home warranty can minimize the chance that an appliance or system failure could postpone closing.
• Eliminate post-sale worries. If a breakdown happens after closing, the buyer can consult the warranty provider for repairs.
• Increase profit. Homes with warranties return a sales price that is 3 percent higher, on average.
Offering a home that is under warranty sends a message to prospective buyers. It says that you care about the product you are selling and that the buyer can have confidence in what they are buying. For more information about home warranties and selling your home, contact your local Carrington Real Estate Services agent today.