Selling real estate always comes down to how many potential buyers you can attract to view a listing and then convince them that this one in particular is the one best suited for them. But grabbing the attention of potential buyers is only the first step in closing a successful deal; you’ll also need to hook them after initially attracting them. The actual “hooking” can be done through a variety of techniques and can even be done fairly inexpensively.
Realtors use staging tactics to improve the overall feel and aesthetic of a home’s interior and upgrading appliances can add an additional luxury feel to the property as well. Both options allow you to present a property that a buyer can see themselves living in in the future with confidence that it’s exactly what they’re looking for. New fixtures and appliances also add another benefit besides the look, assurance for the future. Buyers see a beautifully finished interior and know that they’re not going to be dealing with old appliances and other potential problems soon after the large purchase. However, there’s another tool that sellers can take advantage of to beef up their listing and improve closing: the home warranty.
What is a Home Warranty?
A home warranty is like a warranty that you might have for any other product, but specifically designed for homeowners as a protection plan for the things that make their house function every day. Essentially, a home warranty is a service contract that covers specific appliances and systems within a home for a specified period of time. Depending on the type and scope of the warranty, homeowners get special service for covered items from the warranty company. If a washing machine or HVAC unit goes out, and is covered under the plan, then the warranty company will handle the repairs or even replace the unit altogether.
Are They Worth It?
Whether a home warranty is actually worth it or not all comes down to the specific plan chosen and who’s asking. For a homeowner, there are many times where a home warranty really wouldn’t be worth it (Dave Ramsey isn’t a fan, for example). In some cases, homeowners would be better off keeping money saved for an unexpected expense rather than paying a premium for a warranty that they may never need to actually use.
However, if you’re the one selling a property, it’s an entirely different story. Research shows that properties selling with home warranties sell faster and for more than those on the market without them. According to data collected from a home sales study conducted by American Home Shield, homes with warranties spent an average of 11 days fewer on the market and sold for an average of $2,300 more than homes selling without a warranty. For sellers, that means less time spent on the market and a higher price on closing day; what’s not to love?
The Takeaway
At the end of the day, home warranties can be an incredibly useful tool for sellers looking to seal the deal without spending an arm and a leg. Looking at a list of Home Warranty Company Reviews, it’s not difficult to find a service provider in the area a property is listed in and find a plan that will work best for your situation.
In fact, sellers can purchase (or include with the sale) an affordable limited home warranty that doesn’t cover every aspect of the home and still reap the benefits of having the warranty in the listing because of one simple factor, the psychology of a buyer.
For most consumers, buying a house is likely going to be the single-largest purchase they’ll make and is a massive financial decision. Between the lengthy process of getting a mortgage and saving for a hefty down payment on a home, home buyers want assurance when going through with a purchase, not additional concerns.
Even if not the be-all and end-all of a listing, warranties offer just one more way for buyers to feel secure in the purchase they’re going to make, and the data shows that it’s effective. If you’re looking for an inexpensive way to attract more potential buyers to your listing, consider leveraging a cost-effective home warranty with your home for sale. The numbers speak for themselves.
