Selling your home is a multi-step process. Along the way, you want to make smart, informed decisions to ensure you’re properly marketing your home to potential buyers to garner as much interest as possible. One of the best ways to do this is to purchase a home warranty when you’re getting ready to sell.
For a few hundred dollars, you’ll give yourself, and potential buyers, peace of mind when it comes to any maintenance issues that may occur. By investing this few hundred dollars upfront, you protect yourself against larger financial burdens that may crop up if an appliance breaks when you’re trying to market and sell your home.
What does a home warranty cover?
A home warranty is beneficial for several reasons. The most significant reason is that it offers coverage for specific systems your home may have including heating, cooling, plumbing, and electrical. The exact items included vary depending on the type of coverage you select and the company providing the coverage. It’s a good idea to include any systems or appliances that may require repair in the immediate future. Home warranties cover the cost of these repairs, which can save you thousands of dollars, and it puts you in a better position to sell your home during your preferred time frame.
If you have a professional perform regular preventive maintenance on the systems found throughout your home, and you know they’re in good condition, adjust your coverage accordingly. Recent maintenance on your HVAC system, furnace, or air conditioner should be taken into consideration when discussing your home warranty with the company of your choosing. If you know your furnace works properly because it was recently inspected according to your preventive maintenance schedule, opt for coverage for your kitchen counters instead. Any area of your home requiring even light maintenance should be included in your policy.
What happens if my home requires repairs during the selling process?
If anything happens to your home once it’s under warranty, you’ll have the opportunity to repair the damage using the coverage provided. Your coverage includes a specific maximum dollar amount that you’ll have to consider when making the repairs. Water damage may be more expensive than adding a new countertop in your kitchen or bathroom, so make the most important changes first. You’ll only encounter a potential problem if you spend all your money on one big issue and then don’t have any remaining money to cover additional issues if they arise.
Upgrade your kitchen countertops prior to showing your home if you want to make a big impact on potential buyers. If you like the look of natural stone, try out a new granite option for something impressive and eye-catching. New countertops are a small investment made easier to manage when you know the value of the work is covered. Even a minor kitchen renovation can make a world of difference to buyers who are searching for their dream home.
How long does the coverage last?
On average, most homeowners pay between $300 and $600 for a one-year home warranty. Choose an affordable option and an acceptable time frame when making the final selection for your coverage. If you anticipate selling your home quickly and want to cover minimal repairs for up to the first few months of the new buyers’ moving in, then go with the one-year option. If you think adding lengthier coverage helps you better market your home, then adjust your plan accordingly. Most companies advise one to two years of coverage as the best way to prevent yourself from overspending, so this is usually a good place to start.