HOME WARRANTY:  How To Use It To Sell Your Home Quicker

Published 07-19-2019 by Rico Castillo

Do you know what a home warranty is? 

Do you know you can use it as an incentive to help your home sell quicker?

If you own a home you know many things around the home can go out at any time:

  • The AC or heater goes out in the middle of Summer or Winter.  
  • The oven, all of sudden, won’t heat up.  
  • You take a shower and there is no hot water.  
  • You open the refrigerator when you get home from work and everything in the freezer has melted.

Sound familiar?


Click on the photo above for a pdf sample of what can be covered with AHS Home Warranty


If you had a home warranty, you can call them and they’ll send out a local contractor to take care of those items. 

There is a service fee, which ranges from $75 to $100, depending on who go with.

Before we go into the details of how to use a home warranty to help your home sell quicker, let’s first talk about . . .

Home Warranty:  A Scenario From The Seller Side And The Buyer Side

Before I go into how it can help sell your home quicker, let me set up a couple of quick scenarios- one from the seller’s side and another from the buyer’s side.


SELLER SIDE:

Imagine that you’ve just sold your home.  You’re elated and has moved on with your plans. 

Great, right?

Then you hear from your real estate agent that the buyer of your home is threatening to sue you.  Your real estate agent tells you there is an issue with the plumbing and the buyer is claiming it was not disclosed.

Did your heart just skipped a beat?

Yes, I know you’ve disclosed what you know of the house and an inspection was done.  That should cover you, right?

Not always.

There could be unknown defects that wasn’t found during the inspection and the buyer may  argue that it’s something you should have known and should have disclosed, etc.

Depending on what the issue is, it may or may not be covered by the home warranty.  That’s why I recommend getting an upgraded home warranty rather than a regular one.  The upgraded version covers more items.

Most of the time, the upgraded home warranty covers the issue.

If the home warranty covers the item, then you’re all good.  Your agent can just have the buyer call the home warranty company and it’s all taken care of.

If it doesn’t, then that’s another article.

Whew, right?  Having that home warranty just saved you a lot of headache, didn’t it?


BUYER SIDE:

Imagine you bought a home and you have just moved in.  You’re opening the boxes, looking around the room and is summoning your inner Joanna Gaines or Martha Stewart.

You want your home to look like one of those homes on TV after it’s been rehabbed and then staged by one of the so-called experts.

Exciting, right?

It happens to be in the middle of summer and you notice that you’re getting hot and sweaty.

“Hmmm!  I could swear that I set the temperature at 72 degrees.  Why isn’t the AC coming on?” you ask yourself.


Make sure your home warranty company covers your HVAC.

Photo by DMP Alarms


You go towards the thermostat to make sure that it’s set properly or that it’s on.

It shows it’s on but the temperature in the house is 78 degrees.

What the heck?

You were there for the home inspection and the AC was working then.  Now, it’s not?  What the heck?

Unfortunately, this happens quite often.  Sometimes, the appliances, electrical or plumbing gods have it in for you.  They wait until you move in and then all of a sudden, they don’t work.

You’re cursing to yourself and you’re getting upset.  You’re thinking a $1,000 dollars out the door - a $1,000 dollars that you had planned for something a little more fun or rewarding.

You call your agent, me, and tell me what’s happened.

And I say, “Sorry to hear that.  These things happen, unfortunately.  Do you have the home warranty handy?”

“What?” you tell me.

“If you recall the seller gave us a free 1 year home warranty, remember?”

“Oh, yeah.  I remember.  I don’t know where it is.”

“No problem.  I’ll resend you your home warranty and you can call them.  They’ll send someone out and take care of it.  You do have to pay a service fee of $100, but that’s much better than having to pay for the entire amount.”

You agree and feel much better about the whole situation.

Nice, right?

How To Use The Home Warranty To Help Sell Your Home Quicker

Another quick scenario. . .

Imagine a buyer talking with her agent about possibly making an offer on either your home or on another home.

Her agent goes through the pros and cons of each home, which are almost similar.

Then her agent says, “You know this home (yours) is offering you a free, upgraded home warranty, which will cover the plumbing, electrical, some of the roof, your appliances and more for a year.  You just have to pay for the service call.”

Her ears perk up a bit and her agent proceeds to tell her more about how the home warranty works.

She’s impressed and decides to make an offer on your home, which is great, right?

The buyer will feel a lot more comfortable with your home knowing that if any major items in the home were to go out during the first year she’s in the home, it will be taken care of for just the price of a service call.

Home warranty companies replacing an AC, a heater, a refrigerator or whatever it may be, is not uncommon.  It happens quite often.

For them to replace a refrigerator or an appliance is well worth the service fee, don’t you think?

If you’re selling your home and it is marketed properly, aggressively and most of all, it’s priced well, then offering a 1 year upgraded home warranty will only help it sell faster and  cement the deal.



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About the author: All of the articles in this site were written and provided by Rico Castillo (DRE# 01234643) with Coldwell Banker.  If any information is provided by another source, such as the local MLS or by Metrolist, then a disclaimer will be on that page.

Rico can be reached by cell at (916) 934-3146 or email at rico.castillo@cbnorcal.com.   Visit his YouTube Channel at https://bit.ly/3bAaZJs

My aim is always 100% client satisfaction by helping you accomplish your real estate goals and finding you the home you've Dreamed about in the area you and your family can feel proud and safe to live in!