When you put your home on the market, you’ll clean and de-clutter, and you’ll probably stage it with newer furniture and on-trend décor. But have you considered including a home warranty? It’s not always at the top of every seller’s list, but it can be a huge benefit to you.
It reassures your buyer
A home warranty gives buyers comfort—if something goes wrong with the systems and appliances of the home, they’re protected.
It gives you peace of mind
Having your air conditioning break while your home is on the market is one of the many unpleasant scenarios that can happen. Many home warranty companies include sellers’ coverage when a home warranty is included as part of the sale. Sellers’ or listing coverage is usually free, and will help you repair or replace systems or appliances that break down while the home is on the market. Such coverage is less comprehensive than a regular plan, so check what’s covered and what isn’t.
Your home may sell faster
A study done by the Service Contract Industry Council in 2014 found that homes with a home warranty as part of the sale spent 11 fewer days on the market than homes without a home warranty. If you want to sell your home fast, a home warranty can help.
Your home could bring a higher price
That same study found that listings with a home warranty sold for $2,300 more on average than homes without a warranty. Getting more money for the sale of your home is excellent, but it’s even more alluring when you look at the return on investment.
It provides a higher return on investment than many repairs
Most home warranties cost less than $600. Even if your sales price increase by only half the $2,300 average seen by properties with home warranties, you’re still way ahead. Compare that to the return seen by sellers who replace their front doors, buy a new garage door, or make similar upgrades and you’ll see that a home warranty usually brings a good return on investment.