When last week’s surprising news (on the plus side) about consumer confidence was announced, it was one more sign Utah County homeowners might have felt nudging them in the direction of putting their home on the market. U.S. confidence rose to an 11-month high in August—a turnaround from consumer blahs that had ruled during the first half of the year.
Even when there’s some time pressure to sell your Utah County home, one snag that can stall the decision—especially for those with older homes—is the thought of the cost of bringing the place fully up to date. Even if the mechanicals (heating and cooling systems, plumbing and electrical) are actually in perfectly fine working order, it can seem as if potential buyers will be hard to convince that it’s the case. And if the appliances are veterans, even if they’re perfectly serviceable, potential sellers sometimes fear that prospects will shy away from the Great Unknown of costly dishwasher or clothes dryer breakdowns.
So it’s pretty good news that this is one concern that Utah County homeowners and their future customers can do something about. The doubt-remover is a home warranty—the kind of policy that helps shield against the cost of unexpected breakdowns. Utah consumers can choose from a number of home warranty providers, each of whom offer varying levels of protection.
The home warranty companies provide a straightforward proposition: it is a service contract, usually a year in duration, that promises to pay if a major system or covered appliance should break down due to normal wear and tear. Some high-end policies offer complete coverage for repairs—or even full replacement if necessary. More inexpensive home warranties may provide less comprehensive coverage or require the use of specified repair services.
Once it’s been determined that the incremental cost is a worthwhile investment, it’s important to read through the previsions about what is covered—and to remember that systems and appliances have to be in good working order at the time the policy is issued. Some of the items commonly included can be the plumbing and electrical systems, furnaces and heating ducts, water heaters, pumps, dishwashers, garbage disposals, cooking appliances, refrigerators, washers and dryers—sometimes, even swimming pools. You can see why checking the scope of coverage is critical for determining the choice of contracts.
Lately, home warranties have grown in popularity—possibly because of timing considerations. H.U.D. says it’s because the protection they offer home buyers comes during the critical period immediately following purchase—a time when there is often less extra emergency cash on hand. That can be a critical reassuring factor for Utah County home buyers.
Even more convincing are the statistics from the National Home Warranty Association. If it’s as true for Utah sellers as it is nationally, it’s eye-opening. The NHW finds that when a home warranty is provided as part of the sale, it can help a home sell up to 50% faster.
THIS could come as welcome news if you’ve been undecided about whether this fall will be an opportune time to sell. Even if you’re on the fence, give me a call!