Homes with Home Warranty Service Agreements can be the Deciding Factor for Buyers
Having a Home Warranty Service Agreement, often referred to as a home warranty, on a home for sale not only protects the seller, but also gives them a competitive edge against other homes in the market. Here’s why.
1. Homes Sell Faster with a Home Warranty.
A study released in 2014 by the Service Contract Industry Council (SCIC) found that homes covered by a service agreement sell faster and for more money than homes without one. The study found that homes with a warranty attached spend, on average, 11 fewer days on the market and sold for $2,300 more when covered by a home warranty. It’s important to note for both buyers and sellers that a home warranty is transferable between homeowners. The ability to transfer a home warranty to new owners also helps create added incentives for buyers. You can also note to potential buyers that a home warranty “pays it forward;” when it’s time to sell in the future, the home will have an increased resale value because the owners have taken care of their systems and appliances by utilizing the service of their home warranty.
2. Home Warranties Offer a Competitive Edge to Home Sellers.
Let’s say you’re a buyer looking to buy a home. You’ve picked out a great neighborhood with terrific amenities, good transportation options and great schools for your kids. But there are half a dozen equitable properties up for sale at about the same price. How do you decide which home is best for you and your family? For buyers who are on the fence between two equivalent homes, a home warranty can help push them towards one property over another. Your potential buyers are about to sink a significant amount of their available cash into a down payment, closing costs and moving expenses. The idea of having to come up with additional money to pay for a faulty air conditioning system or a blown-out refrigerator can be awful in the midst of an already trying experience. By offering potential buyers a transferable home warranty, it gives them peace of mind that they won’t be facing potentially troubling repairs or replacements in the future.
3. Home Warranties give Real Estate Professionals a Competitive Edge.
So now that we know that offering a home warranty is an essential component of selling a home, how can real estate professionals stand out? Every real estate professional needs to understand how to use a home warranty as a marketing tool. First of all, a home warranty protects your seller. They are already suffering through the stress of getting their home market ready, dealing with potentially invasive showings and dealing with the emotions of moving. The added stress of confronting a major appliance failure (which could also disrupt the selling process) can be catastrophic. By demonstrating that you understand the differences between complex financial tools like home insurance, home warranties and other contractual devices, you help show potential buyers that you really know what you’re talking about, so when it comes to representing their best interests, the best choice is to go with you.
Protect your clients, and your business, with an affordable Service Agreement. Visit 2-10.com to find out how a Service Agreement can protect you from the unexpected.