Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My townhouse is 11 years old, but I put in hardwood floors and updated the appliances when I moved in 7 years ago, put in a new hot water heater a few years ago and had the HVAC serviced and certified this month in anticipation of selling. Also put in new tile in the bathrooms and I had my handyman take care of some minor plumbing and electrical - normal stuff for a 10 year old home, nothing actually wrong. My townhouse is entry level pricing for the expensive area I live in, and I figured that as I was likely to attract a first time buyer, I wanted to try to allay whatever concerns I could.
Would adding a home warranty be any advantage in selling? I had asked my realtor about it and the response was that they are not common on resales in this area and she didn't think it was worth it. But they don't seem terribly expensive and if they might give my house an edge to help it sell, I'd be willing to look into it more.
I should add that I've only been listed for 5 days and there's been a decent number of scheduled showings plus a good open house so far. And I don't actually need to move until my new build is ready towards the end of the year.
But having to maintain a showing ready home plus vacate as needed with my 10 year old is already getting VERY old. So I'm open to things that might prompt a sale sooner rather than later.
Sellers often do just that. Buyers often negotiate a seller financed home warranty as a seller credit to buyer at closing. $400-$500 is a typical amount.
Instead of offering it up front, why not keep it in your back pocket and use it as a negotiation tactic? People don't value what you give them freely, but if a due-diligence inspection shows up a few things, then throw in the home warranty as a "well, this will take care of any worries you have." What a nice guy you'll be!
Instead of offering it up front, why not keep it in your back pocket and use it as a negotiation tactic? People don't value what you give them freely, but if a due-diligence inspection shows up a few things, then throw in the home warranty as a "well, this will take care of any worries you have." What a nice guy you'll be!
This^^^^
Offer it as a enticement if the buyer starts whining. For me personally I don't care for a home warranty. I rather you take off another 1-2k off the price
Offer it as a enticement if the buyer starts whining. For me personally I don't care for a home warranty. I rather you take off another 1-2k off the price
Well, my quick research indicates it's more in the neighborhood of $300-500 so I would not consider a $1-2K price drop the equivalent as much as I am sure buyers would be happy to have me lower the price!
I'll hold off for now, but keep the idea in mind as something to consider if we nothing happens in a reasonable period of time.
I'm not a huge advocate for home warranties because my personal experience hasn't been that great, BUT
If you plan to offer a home warranty to the buyer, you can also get seller coverage pretty cheaply for the time between when you go order it and when you close. This covers you (when you get it before the inspection) if you have any major appliance repairs needed. I've had 3 deals lately that had hot water heaters that needed replacing (1 blew out the day before closing, 2 discovered leaking during inspection) that would have been covered by the home warranty.
Another thing I like about home warranties is that it helps avoid lawsuits after the close if a major appliance fails right after the sale. Seller may or may not have known about the issue, and inspectors aren't really good at finding appliance issues. Instead of a legal battle, there is a $60 copay for it to be fixed or replaced.
Another thing I like about home warranties is that it helps avoid lawsuits after the close if a major appliance fails right after the sale. Seller may or may not have known about the issue, and inspectors aren't really good at finding appliance issues. Instead of a legal battle, there is a $60 copay for it to be fixed or replaced.
There's that, as a seller, and for my recent purchases like you said inspectors mostly check to see if the burners light, the oven gets warm, the refrigerator is cold, and the dish washer gets wet. That's it. In four recent purchases I bought my own home warranties, and my Realtor negotiated seller to provide in the last two purchases.
Prices vary depending on coverage, starting about $300 and up to several hundred for a deluxe. Note also, these are teaser rates for the first year and with a change of ownership involved. They go up maybe 40-50 percent in the second year. Since my properties are rentals I'm debating whether to continue after the first year. I just wanted to make sure that if something broke after my first tenants moved in it would be a simple $60 fee for me to send in a repairman.
And wow, have you priced double door double drawer stainless refrigerators??? Starting price in the $2K area, about $50 to cover in the first year. I shudder to think of having to pay $2K a few months into a new lease in a new house.
In Texas, a seller is paying for a home warranty 99% of the time. Marketing that you're offering one would do nothing to add to attraction of the home.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In Denver?
