Should I Purchase a Home Warranty For My Property?
Home warranties are growing more popular in Massachusetts, which isn’t a surprise as they fit perfectly into the local real estate market. With a large number of old properties and some other challenges, it’s essential to make Massachusetts homes safer, so the buyers feel secure in their decision to finalize the deal.
A home warranty offers the new homeowner some very much needed protection that extends beyond the regular home insurance policy.
What Are Home Warranties and How Do They Work?
Home warranties are services that are similar to the manufacturer’s warranty that comes with any new cool gadget you buy. However, this warranty will protect your home appliances and systems like plumbing, heating, etc. The warranty company also connects you to the local contractors for repairs and replacements.
Home warranty providers usually have their own network of contractors, and they serve as your single point-of-contact for all repairs of the items covered by your contract. This means that a home warranty offers you protection and therefore helps save money on repair costs. In addition to this, it saves you time as you don’t have to search and deal with contractors on your own.
Today, home warranties are most popular in Texas, Arizona, and Florida, but Massachusetts is quickly catching up. These states have the best conditions for this service to strive as their real estate markets are active and tight. Local homeowners also require all the safety measures they can get to protect their properties.
The real estate market forecasts for 2019 are quite positive, but every agent knows that one cannot rely on those too much. What you need to do in order to make sales is to ensure that the property you are offering is most attractive to the buyers. Including a home warranty in the deal is one of the steps you should take to achieve this. Even Clark Howard, who is extremely critical of home warranties as a whole, admits that they are a powerful real estate tool as homes that have them sell 11 days faster and for the average of $2,300 more than warranty-less homes.
The market for home warranties is particularly lucrative in Massachusetts. The main reasons for this are:
- The overwhelming majority of Massachusetts properties are old, with a large portion dating back to the 1950s and beyond. While old homes have some charm and beauty to them, they are also high-risk properties for costly repairs. Therefore, a warranty is essential for giving the buyer a sense of security.
- 3% of homes in Massachusetts are privately owned, and the sales market as a whole is rather tight in the area.
- Extreme weather events are becoming more common in the state due to global climate change. Days of extreme heat and cold along with snow and rainstorms present a considerable risk for home systems, especially considering that the majority of those are rather old.
Should You Buy a Home Warranty?
There can be no doubt that a home warranty can help you sell a house faster for what is essentially a rather small fee. However, you shouldn’t forget that just any warranty won’t do. If you aim to impress, you need to choose the best one, and that is when reviews of home warranty companies servicing Massachusetts will come in handy. Studying independent professional reviews of the top warranty providers will help you understand which of these companies can be trusted and which offer more benefits.
Note that leading warranty providers offer specialized deals to home sellers and real estate agents. At the moment, the best home warranty providers in Massachusetts are Select, Choice, Total Home Protection, Pride Home Warranty, and HomeServe. Each of these has its own pros and cons, so you should study their terms and see how those apply to the property you are trying to sell.
Most often, you will need to use different providers for different properties. The reason is that the coverage they offer varies, so you’ll need a new contract for every home you come across. Buying a home warranty should definitely go on your list of pre-sale prep. Put it right up there with fixing the common property problems, which make a home harder to sell. Don’t forget about home inspections as well. Reports from reputed inspectors, which state that the house is as safe as can be, impress prospective buyers. They can also help you get a better deal on home warranty and insurance premiums.
Bear in mind that home warranties don’t offer any real protection for very old or damaged systems and appliances. However, they are an excellent tool for new additions to the property. As adding those can up its value and chances for making a quick sale, consider including a few new appliances and making home system upgrades to maximize the value of the home. In this case, a home warranty will prove to be a valuable tool.
When reviewing whether to purchase a home warranty the pros really outweigh the cons. Like any other kind of insurance you need to look at the probability, you will need to file a claim. Purchasing a home warranty can be extremely valuable when you are buying an older home, one that has some deferred maintenance needs or when the mechanical components are getting up there in age.
The cost of the policy in these specific instances is well worth the money. You can feel confident that if something breaks down thousands of dollars won’t be coming out of your own pocket.
Other Helpful Real Estate Articles Worth Reading
- What a lender needs to grant a mortgage – see the documents that a borrower has to provide a borrower to get a mortgage. What is required for each of the most popular types of mortgage loans is provided.
- Don’t follow these home pricing myths – selling a home successfully means pricing it correctly from day one. One of the most significant mistakes homeowners make is thinking they need negotiating room to achieve an acceptable price. This is incorrect thinking.
- How to use a 1031 exchange – one of the best tax laws in real estate is the 1031 exchange. See how you can defer your taxes with a 1031 exchange.
Find more great real estate articles loaded with excellent tips for buyers and sellers in the above resources.
About the author: Jane Koval is a freelance writer. Her interests range from the latest e-Commerce trends to traditional folk culture and adventurous traveling. She always stays open to new ideas and expertise to make her writings handy and captivating for the readers.