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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Are Home Warranties Transferable?
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.
- The buyer’s real estate agent can purchase the policy as a gift for their client. This is a very common scenario. Realtors often front the cost of a one-year home warranty policy as a gesture of thanks and goodwill. New buyers, especially first-time buyers, may be strapped for cash after spending money on their home’s down payment. A home warranty can put the buyers’ minds at ease, reassuring them that they won’t have to foot an expensive bill if an appliance or system fails shortly after moving in. In this scenario, the home seller can work with the buyer’s realtor to transfer the home warranty policy.
- The home sellers can gift the policy to the new home buyers. This is a common tactic to incentivize buyers to purchase a home. It’s a way of assuring the buyer that the home is in good shape and all is working as it should. This scenario may be a little less common in a seller’s market, however.
- The buyer can pay for the home warranty for themselves. In some cases, the home seller may want to convert home warranty coverage to a buyer’s policy, but the buyer offers to take on the cost of the policy. This may be more common in a seller’s market when buyers are competing with others who are interested in the home.
How to Transfer Home Warranty Coverage
Often, the process of transferring home warranty coverage requires only a phone call. Let’s review step by step.
- Work out the details of who will pay for the policy. Will you cover the cost? Will the buyer? A realtor?
- Get all the information you need about who the policy will be transferred to. You’ll want the new homeowner’s name, address, phone number, and email address.
- Contact your home warranty provider. They will explain the process and prompt you to provide all necessary information.
- Some providers may charge a small transfer fee. Once that is paid, you’re good to go.
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.