Buying or selling real estate? A home warranty can be just what the doctor ordered!*

By | February 19, 2014

title insurance New York and Long IslandAlthough in many markets around the country there’s a real estate feeding frenzy pitting buyer against buyer and leading to bidding wars, in some markets the action is slightly more tepid!

For the sake of this discussion we are going to focus on the slower real estate markets and the angst experienced by the seller of property who desperately wants to get potential buyers into the house to look and then keep them there to make an offer.

Looking at the resale market as opposed to new construction and assuming that multiple houses in any neighborhood are going to be for sale, what is going to differentiate one sellers home from the others?

Certainly location within the neighborhood (i.e. main road vs cul de sac), amenities (new kitchen and bathrooms vs original) or property size will all come into play but, assuming that we are comparing apples to apples and two homes are substantially the same, what might push a buyer towards one home and away from the other?

Consider that for a buyer, even with an inspection that will be conducted by an engineer, the fear will always exist that 3-days or a month after the closing some appliance will breakdown or that there could be an issue with the electrical or plumbing systems.

How can the seller of an older home overcome that fear?

From experience a home warranty that’s offered to a potential buyer, even if for only the first year after purchase, provides the needed value-added and comfort for them while improving the property’s marketability for the seller.

Prices of a warranty will vary depending on the company chosen and the features of the home that will be covered, but for well under $1,000 the seller can include protection for a buyer for a year that will almost certainly boost the attractiveness of their listing.

An idea of what might be included in a warranty are:

Clothes Dryer, Clothes Washer, Refrigerator, Air Conditioning System, Heating System, Water Heater, Electrical System, Plumbing System, Plumbing Stoppage, Oven/Range/Stove, Built-in Microwave, Cooktop, Dishwasher, Garbage Disposal, Ceiling & Exhaust Fans, Ductwork, Garage Door Opener, Whirlpool Bathtub

*The caveat for this product is that home warranty policies are no different than any other type of insurance in that the fine print needs to be read AND understood regarding any limitations or exclusions that may be incorporated so that there are no surprises if a claim is submitted!

If anyone is interested in the names of companies that provide these warranties, contact us at orders@hallmarkabstractllc.com and we would be happy to provide them.

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