Tips & Trends for the Flagstaff Real Estate Market:
Past Articles [December 2002]
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The Value of a Home Warranty
According to the National Home Warranty Association, the number of homes for sale with a home warranty has been on a steady rise in recent years. Home warranty programs can add value to a Seller's home while protecting it against unexpected repairs during the listing period. Buyers gain assurance that the home they are buying will be covered against many costly repairs for one year. With advantages to both Sellers and Buyers, it's easy to see why more homeowners are asking for a home warranty.
Figures from Aon Home Warranty Services Inc. a major home warranty provider indicates that offering a home warranty makes the likelihood of selling your home 29 percent greater than a home without a warranty. Additionally homes with warranties sell 15 percent faster and at a 2.2 percent higher price than homes without. These numbers are significant especially in a market such as Flagstaff where there is a lot of competition to sell homes.
There are numerous providers of home warranties in Arizona. The cost is between $250-$400 per year depending on the plan and coverage you select. If you are preparing to put your home on the market and want to provide a home warranty ask your realtor to provide you with brochures from several providers and you can do some comparative shopping.
If you are in the negotiation process to purchase a home you may want to ask the seller to provide a home warranty. Knowing that you have a home protection plan will give you piece of mind after you move in.
As with any insurance or warranty policy I recommend that you review the coverage and limitations closely. Remember knowledge is when you read the fine print experience is when you don’t.
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