How a home warranty makes your offer stand out in a Seller’s market
In this hot Seller’s market, your Buyers need every advantage you can give them. Today, we’ll show you how providing a home warranty from 2-10 Home Buyers Warranty (2-10 HBW) can help your offer stand out in a Seller’s market.
A home warranty helps you make a “clean” offer
Sellers have all the leverage right now. Extreme demand gives them the ability to find the “cleanest” offer. The fewer contingencies you request of the Seller in your offer, the better. By providing a home warranty, you can position your Buyers to make their cleanest offer possible.
It’s important to note that we don’t recommend skipping an inspection. But when a Buyer provides a home warranty, Sellers can breathe easier. As long as the inspection doesn’t uncover major issues (e.g., a huge crack in the foundation), a home warranty can show that the Buyer isn’t going to ask the Seller to replace still-functioning systems or appliances.
That can mean more money in the Seller’s pocket and less time upgrading things they’ll never use.
A home warranty can protect the Seller while the home is on the market
You can also give your Buyer the chance to add value to their offer through Seller coverage. Seller coverage is complimentary (where allowed by law) and can cover major items like furnaces, water heaters, and refrigerators. Additionally, you can protect the Seller’s air conditioner for just $50–$60, which is a tiny fraction of what the Seller would need to pay themselves to address an A/C issue.
Especially now—with summer heat waves setting in and air conditioners running constantly—this coverage can be invaluable to Sellers. Because if something like their air conditioner were to break down while the home was on the market, it could derail a sale. That could be unacceptable to Sellers, many of whom expect an extremely quick sale in this market.
So, your Buyers may be able to protect the Seller by providing Seller coverage themselves. That way, if something major does break down while the Seller’s home is on the market, the Seller has a solution. That can be a huge relief for Sellers while also protecting your Buyers against having to invest in new things so soon after their down payment.
You or your Buyer can offer to include the warranty
One of the most common questions about a home warranty is “Who pays for it?” In this market, we’re seeing Buyers purchasing the home warranty for themselves. (In some cases, agents will buy one for the Buyer as a closing gift.) This can give your Buyers an edge.
By providing the warranty themselves, they’re showing the Seller that they have confidence in the home’s major systems and appliances. It can also show Sellers that the Buyer is committed to caring for the home. For some Sellers, knowing that the home they lived in for years or decades is in good hands truly means something.
Additionally, home warranties are a way of life in some states (e.g., Texas). In many of those cases, the Seller traditionally purchases the home warranty as an incentive. When a Buyer can offer to provide their own home warranty at the closing table, it can do two things.
- Provide additional value to the Seller in a situation where they may have expected to have to provide it themselves.
- Help your Buyers in the long run, since a home warranty is often less expensive than having to address major breakdowns themselves.
Give your Buyers every advantage they can get with a home warranty from 2-10 HBW
Real estate transactions move faster than they ever have before. It’s still so important to give your Buyers every advantage they can get to win the deal. A home warranty from 2-10 HBW can be that advantage.
A home warranty can help make your Buyers’ offers cleaner.
It can protect the Seller while their house in on the market.
And when you or your Buyer come to the table with a home warranty, it can show that your Buyer is willing to go the extra mile to win the deal.
2-10 HBW offers comprehensive systems and appliances home warranties to help protect your clients from unexpected repair and replacement costs. Contact us to learn more.