Home Warranties
What is a Home Warranty and How Does it Work?
A home warranty is a type of insurance policy designed to help protect homeowners from the high costs associated with unexpected repairs caused by normal wear and tear within the first 12 months in their new home.
A well-structured home warranty will cover such items as kitchen appliances, heating and cooling systems, electrical and plumbing, and roof leak repairs. It will not cover pre-existing conditions, and typically the homeowner is required to pay a small deductible for each service call.
The best policies will allow the homeowner to select their own service contractors.
Liquid Blue Realty offers home warranties from America’s Preferred Home Warranty (APHW)
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What’s different about the way Liquid Blue Realty recommends home warranties? Some real estate companies offer warranties as a way to earn additional income. The warranty company pays them a marketing and administration fee for selling the policy, which isn’t always made clear up-front to the client.
At Liquid Blue Realty, we never accept home warranty selling fees. Instead, we use those fees to discount the cost of the policy, providing a lower total policy cost to our clients. We offer home warranties for the right reasons; because they help sellers sell their home faster, and for more money, and to give buyers additional protection during the first year in their home.
In our eyes, home warranties are a tool that helps our listings sell faster, since buyers will feel more comfortable purchasing our clients’ listings with the peace-of-mind provided by having a warranty in place. Our buyers also benefit from our efforts to negotiate the warranty coverage into their offer, and sellers are much more likely to pay for the policy at the reduced policy cost we provide.
Read our Recent Blog Post on the Subject of Home Warranty Fees
1. Home warranties can increase your home’s value in the market. Studies have shown that pre-owned homes with a home warranty were valued by buyers as much as 2% higher than homes without warranties. More value in a buyer’s eyes, results in a higher sale price and more money in the seller’s pocket.
2. Home warranties can result in a faster sale. Buyers have more confidence in homes with warranties, resulting in a quicker sale – up to 60% faster than homes without a home warranty.
3. Home Warranties protect your equity investment. Having a warranty in place during the listing period can help eliminate many surprise expenses sellers sometimes experience as a result of unexpected repairs while their home is on the market.
4. A home warranty can help reduce the potential for after-sale disputes with buyers. Most lawsuits brought by buyers against sellers after the sale are related to property condition problems. A properly structure home warranty is designed to reduce this liability, providing peace of mind for you and your buyer.
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