Something new that I learned from selling my home is Home Warranty plans. Also called Home Protection Plans, a Home Warranty is an appliance service protection plan that covers the maintenance expenses associated with household items such as refrigerator, dishwasher, HVAC units, plumbing system, electrical wiring, and more. I had never heard of this type of insurance before putting my house up for sale. But in other parts of the country like California, they are practically standard in most home sales.
A standard home warranty contract costs about $250-$400 depending on your state; surprisingly low considering the peace of mind that you’ll give the new buyers. For this small amount (that the seller pays) the home warranty typically covers the mechanical systems of a home such as plumbing, heating, electrical, water heater, and most built-in appliances. Structural components typically are not covered. Some home warranty policies cover garage door openers and roof repairs with certain limits. Coverage normally runs for a year, but it may be extended at the owner’s option for a renewal fee.
This is a great option if you’re selling a bit older home with appliances and systems that may be also aging. Our house was built in 1994, and it had a newer water heater and appliances, but the furnace was original and made the buyers a bit nervous. The offer of a Home Warranty helped ease their nerves, told them that I had confidence that my home was in good working order, and helped close the deal.
I would recommend offering a Home Warranty, especially if your home has been on the market for a while. The extra cost is well worth it if it lands you a confident buyer. Begin by asking your real estate agent or looking at Home Warranty Reviews and searching on your state for companies that provide this service.
