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Written By Erin EasleyPublished 10/16/23
Moving is one of the most high-stress events we experience. Fortunately, a home warranty can make the process of selling your home a little bit easier.
There are of course the standard benefits of home warranties. If the water heater suddenly starts acting up, or the garage door is on the fritz, your home warranty provider can send a technician to resolve the issue at minimal cost to you. But there are less obvious advantages of having an active home warranty contract while your home is on the market. For one thing, warranties have been shown to increase home values. For another, homes with active home warranties sell more quickly than homes without them.
So you’ve found a buyer, sold your home, and moved out. What happens to that home warranty? In this post, we’ll review how to convert seller home warranty coverage for the new buyers of a home.
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Home warranties provide several benefits for both buyers and sellers:
· Peace of Mind: Buyers feel more confident knowing they have protection against unexpected repair costs.
· Cost Savings: Sellers can use home warranties as selling points and may not have to cover expensive repairs before selling.
· Convenience: Both parties can avoid disputes over post-sale repairs by having warranty coverage in place.
For sellers, offering a home warranty as part of the real estate transaction can be a strategic move. It can make their property more appealing to potential buyers, which can lead to quicker sales and potentially higher sale prices. Additionally, sellers can avoid the stress of unexpected repair requests during the negotiation process.
From the buyer's perspective, having a home warranty included in the purchase can provide a sense of security and peace of mind. It means that they won't be burdened with the cost of repairing or replacing covered items immediately after moving in. Instead, they can focus on settling into their new home without the worry of unexpected expenses.
Policies may differ from plan to plan, but generally yes, home warranties are transferable service agreements. It is incredibly common for a real estate agent or home seller to purchase a home warranty policy with the intent of later transferring it to the new buyers of the home.
The process of transferring your home warranty contract is actually quite simple, but it can work out in a few different ways.
Often, the process of transferring home warranty coverage requires only a phone call. Let’s review step by step.
Transferring home warranty coverage from the seller to the buyer can be a straightforward process if you follow these essential tips:
Thoroughly review the existing home warranty contract to understand what is covered, what is not, and any specific terms or conditions. This knowledge will help you make informed decisions and avoid unexpected surprises.
Contact the home warranty provider and ask specific questions about coverage. Clarify any doubts you may have about the extent of protection for various home systems and appliances.
Maintain records of all communications and documentation related to the home warranty transfer. This includes emails, application forms, receipts, and any other relevant paperwork. Having a well-organized record can be invaluable if issues arise.
Keep track of the expiration date of your home warranty coverage. Knowing when your coverage ends allows you to plan for renewals or explore other options for extended protection.
If you have a policy with Liberty Home Guard that you would like to convert, reach out to us today at (833)-544-8273. We’re happy to talk you through the process.