How Home Warranties Benefit Buyers and Sellers

By Michelle D. Formica, Manager, Marketing Services, The Long & Foster Companies.

Nov 201819

How Home Warranties Benefit Buyers and Sellers

By Michelle D. Formica, Manager, Marketing Services, The Long & Foster Companies.

Buying or selling a home is such an exciting time, but it can also be stressful, especially if an appliance or home system breaks suddenly. Home warranties provide valuable coverage, giving you reassurance during and after your real estate transaction. Home warranties offer benefits and convenience to buyers and sellers, alike.

Buying A Home

If you are purchasing a home, consider purchasing a home warranty, too. “For those buying a home, especially for the first time, home warranties are critical,” said David Pikovsky, vice president, regional sales for HMS Home Warranty, which powers the Long & Foster Home Warranty Plan. “Many homebuyers are coming to the closing table with all the cash they have and little to nothing budgeted for unforeseen repairs. A home warranty can help cover those costs.”

It is not uncommon for appliances and systems to break unexpectedly after moving into a new home. A family of five is usually harder on appliances and systems than an individual, explains Pikovsky. New homeowners introduce new usage patterns, which can wear on the existing appliances and systems.

With a home warranty, you can avoid paying retail costs on appliances and systems. Instead, you can benefit from wholesale pricing through your home warranty company’s network of vendors. HMS always strives to provide the best customer service for the best price, but it’s important for customers to know that sometimes discounted replacement appliances take slightly longer to come in, adds Pikovsky.

Selling Your Home

If you are selling your home, you can enhance its marketability by offering a home warranty. More and more homebuyers are asking for home warranties as part of the negotiation because they want the protection and reassurance it provides when making such a large investment.

A home warranty offers coverage to your home while it’s on the market and is transferred to the homebuyer for a certain period of time post-transaction, explains Pikovsky. The last thing a homeowner wants to do is put money into expensive repairs in a home they are selling – a home warranty can help cover those costs.

Whether you’re buying or selling, you can avoid the headache of doing repairs yourself by leaning on a home warranty company.

“Home warranties were founded in the real estate channel in the late 70s/early 80s primarily as a marketing tool for buyers and sellers,” said Pikovsky. “Now, they reduce the after-sale risk for clients, real estate companies and agents.”