Explaining Home Warranties to Potential Buyers

Sellers offering home warranty coverage have the opportunity to sell the home faster, get more money for it, and make sure the buyer is happy with their purchase. However, many buyers may not yet be aware of what a home warranty is or its benefits. When explaining home warranties, sellers can use the following talking points.

Not the Same as Insurance

A home warranty is not the same as homeowner’s insurance. Insurance covers things that happen due to disasters, like roof damage from a storm. The coverage available from Home warranty companies is meant to cover home appliances and systems that stop working, like the washer machine if it no longer drains. With both insurance and a home warranty, buyers are covered no matter what happens. They can have peace of mind that they won’t have to worry about their home as long as it’s covered by insurance and a home warranty.

Coverage for Major Appliances in Home

Major appliances in the home can be costly to repair or replace. The cost of repairs varies based on the type of appliance, the brand, its age, and what is broken. If the repair is significant, a replacement might be needed. Homeowners may struggle to purchase a new washer machine, refrigerator, or other major appliance so soon as purchasing the home. With a home warranty, though, repairs are covered and the buyer won’t have to worry about anything breaking down.

Save Money During the First Year of Ownership

During the first year of owning a home, more than 75% of buyers say they have faced unexpected maintenance costs. Shortly after buying a home and furnishing it, money can be tight, so repairs can make a huge dent in the buyer’s savings account. When multiple things go wrong, it can be hard to keep up and make sure everything is repaired or replaced as needed. Instead, if they have a home warranty, they won’t have to worry about the costs of any appliances or systems in the home breaking down. The home warranty will cover the repairs, saving the buyer a significant amount of money.

Easily Extend Coverage for Future Years

While home warranties are often used within the first year of owning a home, they may be needed later on, too. Most companies will allow the buyer to extend the home warranty for another year when the coverage comes to an end. The buyer can continue to save as much money as possible on potential repairs even after the first year of homeownership. If they do decide to extend the coverage, they will be happy to know that the cost is low for all of the benefits received.

Offering a home warranty can be incredibly beneficial for sellers, but buyers may not understand the benefits. If you’re planning on selling a home and would like to offer a home warranty with it, use the information here to explain the benefits the buyer may receive. They’ll end up being happier about the purchase, which could mean the house closes faster.