If you want to save your seller some money and help market your listings, don’t forget to have your seller sign up for a home warranty when they list their home.
Some home warranty companies such as First American Home Warranty offer “FREE” seller coverage during the listing period. Payment of the home warranty occurs at closing, and if a listing never closes, there often isn’t any money collected. With First American, the only money a seller would be out of pocket during the listing period would be for the deductible for a service call.
Seller coverage is an upgrade and some features such as HVAC systems are considered optional coverage items that have additional costs. Once your seller is signed up for the warranty, they are covered during the listing period. If any covered item breaks down they simply call the warranty company and pay their service fee deductible. This is especially handy for covering home inspection items. First American charges a deductible per “trade” call meaning if there are several electrical items that would be covered, there is only one deductible charged.
This coverage does not impact the buyer’s coverage after closing.
There are many errors and omission insurance companies that ask Real Estate Brokers on their application if all clients are offered home warranties. Offering home warranties to all clients can give a Broker a discount on their E&O charges. Home warranties are also a great way to offer your buyers and sellers peace of mind and budget protection.
The cost of a home warranty varies by company and so do services so read the fine print carefully. In Richmond, Virginia First American starts as low as $365 for basic coverage with a $60 service call fee. There are upgrades to cover additional items such as HVAC for sellers and other items for buyers. Whichever warranty your seller purchases, make sure they understand the coverage they are getting.