Home Protection Plans - Benefits Both Buyer's & Seller's
Today, purchase agreements in Minnesota advise the buyer and seller to "investigate the various home protection/warranty plans available for purchase" and give the parties an option to obtain a plan to be purchased by either party. So, let's discuss why a seller may want to provide a plan or why the buyer may want to request a protection plan be provided.
When a seller is preparing their home for sale most of the time they are focusing on the kinds of repairs or updates to increase curb appeal or give their home that "special warm feeling" to make the buyer feel welcome when they come for their showing. Things like greening up the lawn, painting the kids rooms a neutral color, removing family photos, clearing magnets off the fridge.
But what about that older water heater, furnace, dishwasher or A/C unit? What would happen if they should break down and need repair while the home is listed? Sounds like additional, unplanned expenses for the seller-unless they have a home protection plan that covers those items while the home is listed, for only a low, set service call fee. What if the seller didn't have to pay for the home protection plan until and only if the home sold and closed? What if the seller could transfer that coverage for a full year after closing to the the buyer?
Many home buyers today are first time buyers who have been saving to be able to make their down payment. By the time they get to closing, their savings are pretty thin. How would they feel if 2 weeks after closing that old water heater, furnace, dishwasher or A/C unit died. Guess who they are going to call if a home protection plan isn't in place?
These protection plans make sense today because for the buyer they can improve confidence in their purchase and provide relief from many expenses related to unexpected breakdowns on covered items. For the seller it can help distinguish their property from other listings, reduce post-sales issues while providing coverage during the listing period.
Ask your CENTURY 21 Premier Group agent for more details.