You’ve just moved into your new home — and it’s perfect. You’ve squared away your real estate services in Los Angeles, given the rooms a new coat of paint, unpacked all of your moving boxes and thrown a fun housewarming party. But now all of a sudden, your washing machine has broken down and needs replacing — and that will make a considerable dent in the savings you have left.
Unfortunately, this scenario can happen. But if you have a home warranty, you don’t have anything to worry about. So what exactly is a home warranty and who should be responsible for purchasing it?
A home warranty is a type of coverage that covers the costs of repairing or replacing an appliance such as a washing machine, dryer, dishwasher or water heater. In general, a home warranty costs between $300 and $500 and is typically valid for a year, after which it can be renewed for another year.
In the scenario above, you’d call the home warranty provider and explain the situation. The provider gets in touch with a contractor who then calls you and sets up an appointment to inspect, repair or replace the appliance. The provider covers the costs of the parts or appliance, and you typically pay a small service fee to the contractor, as The Balance reports.
When your home is on the market, you want it to sell quickly and for a good price. And what’s so interesting is that according to experts, homes that come with a home warranty sell 11 days faster than those that don’t. In addition, they sell for an average of $2,300 more. The reason for this is that a home warranty gives home buyers the peace of mind that they won’t have to deal with any major expenses due to failing appliances in their first year in their new home.
Knowing this, it’s unsurprising that to attract more clients, a growing number of seller’s agents offer a home warranty as a part of their services. In other words, the seller’s agent uses the home warranty as an additional selling point for buyers who might otherwise be overly cautious about buying a home that isn’t new. By doing this, the agent also shows sellers that he or she has their best interest at hearts. After all, the sellers will benefit from the shorter time on the market, as well as the higher selling price — and so will the agent, as he or she will complete the transaction faster and earn a higher payout, since that’s a percentage of the selling price.
In short, when a seller’s agent purchases a home warranty for a client’s home, all parties in the real estate transaction profit.
If you’d like more information about this process and to find out more about real estate services in Los Angeles, please contact our offices at your earliest convenience.