Sellers Home Warranty program is specifically designed for people selling houses. That includes professional home sellers like property managers, real estate professional and even the “for sale by owner” individual seller. Originally, most home warranties were essentially service contracts, designed to provide short-term coverage for repair or replacement of major systems and appliances. However, when large property management systems offer a warranty as part of the purchase of a new home, it makes the investment seem safer, since all big replacement and repair bills are theoretically covered through the first year of ownership.
A Very Good Investment for the Seller
Home warranties are an excellent value to home sellers. The reason is that buying a property is a major purchase, and many people are nervous about the commitment they’re making when they purchase a home. A warranty can help a seller ease a buyer’s fears because of the extra protection afforded by the warranty for the major and most expensive systems and elements of a house. As a result, the seller is more likely to be able to make a sale from their property and turn it around faster, increasing profit.
The Cost to the Seller
The cost of providing such coverage to the professional home seller is often nothing or negligible, especially if it is a newly built home. Many seller plans allow the seller to represent the home as covered by a warranty for the first 13 months – if the plan is never used, the professional seller pays nothing. However, if the new homeowner makes a claim then the seller must pay the premium for the warranty – if the plan is never used, the seller owes nothing. The sellers warranty program is an excellent investment for the seller, although it may offer very little in coverage, it does seem to assuage new buyers’ fears.