What do Harleys and Home Warranties Have in Common?

By: Leslie Pandey, Senior Content Writer/Editor | May 9, 2007

Today’s Wiki Wednesday Feature: Enticing Buyers With a Home Warranty

Last week, we released our quarterly home value report, which shows that the national real estate market is sputtering. While home values in certain markets (such as Corvallis, OR, Grand Junction, CO, and Seattle, WA) are still appreciating, many other markets (such as Sarasota, FL, and Santa Barbara, CA) are hurting.

What does this mean for home sellers? It means they’re getting more creative. Here’s an increasingly popular tactic: offering incentives to prospective home buyers. This isn’t a new idea — home builders, in particular, have been doing it for years. But as this Boston Globe article reports, these days, we’re not just talking about upgrading to premium appliances or granite counters. Want a brand-new Harley-Davidson? That’ll work. A trip for two to Italy? Sure! A car? Why not?! Sellers are throwing in more lavish — and creative — incentives to lure buyers.

Can’t bring yourself to shell out for a new car to attract a buyer? If you’re selling in a sagging market and you think your home needs an extra enticement, consider offering a home warranty instead.

Home warranties guarantee that the home’s mechanical systems — plumbing, heating, electrical, air conditioning — will stay in working order for a set period of time (typically one to five years, with possibility of renewal). The home’s appliances are also typically covered. The homeowner then pays a small deductible in order to replace or repair anything that happens to malfunction while under warranty. Home warranties are typically offered on new homes, but even if your home is older, you have the option to offer a warranty to perspective buyers.

As the article points out, home buyers naturally love warranties that are included in the price of the home. It gives them piece of mind. And for sellers, it just might make your house stand out from the competition. No free car necessary.

Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.

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Categories: Real Estate, Wiki Wednesdays, Zillow

Comments

2 Comments so far

Jeff on May 9, 2007 7:00 pm

As real estate becomes more a sellers market, buyers will demand more incentives, and the more given the more will be demanded. Eventually some perks will just become standard.
shaun mclane on May 11, 2007 5:12 am

I’d take a home warranty over a harley any day. It’s almost ironic that the two are even mentioned in the same sentence. One needs repairs dauly, the other avoids repairs. Nice post. I’ve found that offering a big screen TV helps. They can be purchased for under $1000 at most wholesale clubs, but the value to the buyer seems much higher.