The shortage of houses available for sale has caused some residential real estate markets to shift favorably for the sellers. But many homebuyers still have the upper hand in some parts of the country.
Are you selling your home in a buyers’ market? Perhaps you own a rather unusual house, making it difficult to sell. If so, maybe it’s time you think about offering some incentives to your prospective buyers. Besides pricing your property fairly, another way to nudge a potential buyer to make an offer on your home is by using a home warranty from Liberty Home Guard as an incentive.
How Does It Work?
A home warranty provides coverage for repairs and replacements of home appliances and systems for a yearly fee. It’s essentially similar to the warranty policy that a buyer gets after buying a home, but this one provides coverage for your home while it’s advertised for sale. Then, the service contract is transferred to the homebuyer during closing. So, how do you use a home warranty as an incentive to attract homebuyers?
Start by offering to pay for a home warranty plan to your prospective buyer. Typically, this should cover the first twelve months of ownership. These plans often cost between $300 and $500, depending on how comprehensive the coverage is.
This amount may seem like too much for something that might not even be needed. But when you factor in what would likely go wrong for the duration of the market listing period up until the time of closing, this one-time charge might be worth it. This makes even more sense if the appliances and systems are either older or no longer covered by the product manufacturers’ warranties.
Many home warranty companies offer different packages, and some of them are better than others. Always pay attention to the small print restrictions and exclusions, as they can limit the plan’s usefulness. Additionally, let buyers know to expect a service call fee whenever they need servicing to fix a broken appliance or component of a system. Lastly, keep in mind that a home warranty plan will not cover large items, such as cracks in the structure’s foundation, leaking roofs, or collapsed sewer lines.
Ways This Type of Incentive Can Help You
When a potential buyer knows that a home’s appliances and systems are covered, it makes your house more appealing to them. This is especially true if you own an older home that lacks the fancy upgrades that often spark most buyers’ interest. Using a home warranty as an incentive could be a great marketing tool for a relatively minimal cost.
Many homebuyers will likely ask for one anyway. So, why don’t you advertise this feature upfront? A home warranty plan will surely help your property stand out from the rest of the competition. A potential buyer may perceive your home as having better upkeep than those without the warranty plan as an incentive. This is because you, the current homeowner, have ensured that your home is protected.
Besides, many homebuyers empty out their savings to cover the down payment on a house and the cost of moving, as well as furnishing their new residence. The last thing a new homeowner would want is for mechanical issues to come up right after closing. Offering a home warranty plan as an incentive can go a long way in giving buyers confidence in your home. The warranty will help in reducing sudden, exorbitant expenses to a mere service call fee. This is beneficial especially for first-time homebuyers, as a lot of them mistakenly believe their home insurance will cover everything, including those damages caused by age and routine wear and tear.
The Bottom Line
There’s probably nothing worse than feeling stuck in a seemingly endless process, such as having your home sitting stagnant on the market.
But not everything is beyond your control. There are many things you can do to help move your property off the market. By learning how to sell your home with the help of some incentives and other strategies, you can put your best foot forward and achieve that smooth, profitable sale for which every seller dreams.