Across the country, home sellers still have an advantage over homebuyers. Even before COVID-19 took its toll on the housing market in 2020, there weren’t enough houses being built or listed to meet demand. Consequently, prices continued to climb and many would-be buyers found they couldn’t afford a house.
After the pandemic hit, many experienced income loss or insecurity. New construction was still behind — caused in part by delays related to shortages of materials — and the supply chain for appliances slowed down. In general, homeowners were at home more often, using their appliances and mechanical systems more than ever. So, demand for repair and maintenance services also increased; companies offering these services were booked for weeks or months at a time. Those who needed immediate appliance or home repair and replacement services had to wait much longer than usual.
Despite lower mortgage rates, inventory remains limited and home prices have continued to rise. Homebuyers have faced bidding wars even on subpar properties in many parts of the country, which has stretched budgets and left many facing fierce competition and premium prices.
When it Pays to Have a Home Warranty
In the midst of economic uncertainty and a tough housing market, having a home warranty can provide extra protection for home appliances and systems not covered by homeowners insurance. Even in today’s sellers’ market, this coverage may help all parties involved.
For Sellers and Buyers
Having a home warranty could pay off in a number of ways for sellers and buyers. According to a recent report by NerdWallet, available homes are priced 5.5 times higher than the median income of first-time buyers. So right now, a lot of buyers are waiting for the market to improve. A seller who can offer the extra coverage of a home warranty may provide potential buyers with incentive to make an offer sooner.
A seller gifting a home warranty to a buyer could also make the process faster and provide peace of mind for both groups. A warranty offers a plan for the buyer to cover problems that pop up after closing, rather than making the seller responsible. This would be especially helpful with homebuyers who waive inspections and accept a house “as is” for more than the asking price. After stretching their budget to afford a house, buyers can’t handle additional costs like appliance replacement and repairs. So, they are likely to appreciate home warranties that pay for necessary services.
For Current Homeowners
Current homeowners could also enjoy the coverage that home warranties offer during these unpredictable economic times. If there are older appliances in the house, or the current HVAC system is on its last legs, having a warranty cover the cost of repair or replacement could ease the financial burden.
Finding the right home warranty
Whether you’re selling, buying or currently own a home, it’s important to shop around to find the right home warranty coverage for your needs. But having to contact real estate agents and brokers for recommendations or research providers online is time consuming. For a simpler, quicker process, you can contact the home warranty experts at Aegis. We’ll walk you through the process, answer your questions and help you choose a home protection plan that fits your needs.