Maximizing Your Home’s Resale Value: The Importance of a Home Warranty

Ellie Brooks

Written By Ellie Brooks

Published 07/31/23
Maximizing Your Home’s Resale Value


Selling a home is a complex process, and as a homeowner, you want to ensure that you receive the highest possible house resale value. While various factors contribute to a property’s appeal, one often overlooked aspect is the inclusion of a home warranty. In this post, we will explore the significance of a home warranty when it comes to maximizing the value of a house. We will discuss the benefits a warranty offers, the peace of mind it provides to potential buyers, and how it can give your property a competitive edge in the real estate market.

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A Better Sale: How Home Warranties Increase Resale Value of Home Properties

Homes protected with warranty coverage tend to sell faster than homes without one. They also sell for more money. Various studies by the National Home Warranty Association and consumer advocacy groups have found that home warranties can increase a home’s value by anywhere from 1%–3%—that can several extra thousands of dollars for a home that matches the median home value in the United States. Such studies have also found that homes with warranties sell twice as quickly. These statistics highlight the obvious benefits of warranty services in the real estate market. Let’s examine just why a home warranty is so desirable.

1. Protection for Home Systems and Appliances

One of the primary advantages of having a home warranty is the comprehensive protection it provides for your home systems and appliances. A home warranty typically covers the repair or replacement costs of major components, such as HVAC systems, plumbing, electrical systems, kitchen appliances, laundry appliances, and more. By including a home warranty in the sale of your home, you reassure potential buyers that they won’t have to worry about unexpected repair or replacement expenses in the immediate future.

2. Increased Buyer Confidence

Buying a home is a significant investment, and potential buyers want to feel confident about their purchase. When a home warranty is included in a real estate transaction, it instills a sense of security and peace of mind in buyers. It helps mitigate concerns about the property condition resale because buyers know that if any covered systems or appliances break down after they move in, they can rely on the warranty to see that the problem is swiftly and affordably resolved. This added layer of protection can make your home more appealing to potential buyers and may increase their willingness to pay a higher price for the property.

3. Differentiation in a Competitive Market

In a competitive real estate market, it’s crucial to make your home stand out from the rest. Including a home warranty as part of the sale can give your property a competitive edge. It demonstrates that you are proactive and invested in the well-being of the buyer. Buyers may view a home warranty as a valuable bonus, especially if other comparable properties on the market don’t offer the same level of protection. This differentiation can help attract more buyers and positively impact how they estimate your home value.

4. Simplified Negotiations

Negotiations are an integral part of any real estate transaction. When a home warranty is already in place, it simplifies the negotiation process. Buyers may feel more confident in making an offer closer to your asking price, knowing that they won’t have to worry about potential repairs immediately after moving in. With the assurance of a home warranty, buyers can focus on the home property value itself, rather than factoring in potential repair or replacement costs. Don’t discount the value of a home warranty as an effective bargaining chip.

5. Transferable Coverage

Many home warranties offer transferable coverage, which means that even if you sell your home before the warranty expires, the coverage can be transferred to the new homeowners. This transferable coverage can be an attractive selling point, as buyers appreciate the ability to continue the warranty protection without having to bear the additional cost. It adds an extra layer of convenience and value to your home, making it more appealing to potential buyers.

Who Handles the Home Warranty in a Real Estate Transaction?

Including a home warranty in a home sale can be seamlessly arranged either by the seller or a real estate agent. Sellers can proactively purchase a home warranty and include it as part of the listing agreement. This demonstrates the seller's commitment to providing added protection and peace of mind to potential buyers. Alternatively, real estate agents often have established partnerships with reputable home warranty companies and can facilitate the inclusion of a warranty in the sale. They can guide sellers through the process, help select the appropriate coverage, and negotiate the terms of the warranty on behalf of their clients. By leveraging the expertise and resources of real estate professionals or taking the initiative as a seller, incorporating a home warranty into the home sale can be a straightforward and beneficial step in maximizing its value.

How to Secure Home Warranty Coverage for Your Home

In today’s competitive real estate market, maximizing your home’s value requires careful consideration of various factors. Including a home warranty as part of the sale can significantly impact your home’s appeal and value. By providing protection for home systems and appliances, instilling buyer confidence, differentiating your property from the competition, simplifying negotiations, and offering transferable coverage, a home warranty offers tangible benefits that can help you secure a higher selling price.

So where to begin? If you’re planning on selling your home in the near future, reach out to Liberty Home Guard to find a warranty plan that can expedite your home’s sale. You can use our website for a free quote, or call (866)-432-1283 to talk with our team.

We can also advice you on potential home protections for your new residence. Whether you’re downsizing, moving into a larger space, or building a new home from the ground up, there are affordable policy options that will provide lasting protection, convenience, and peace of mind.

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