Buyers seem to love a home that comes with a home warranty, so as an investor, should you buy a warranty policy to sweeten the deal?
What is a Home Warranty?
A home warranty is a policy that covers a house’s major systems and appliances when they break down. Although buyers may not need to use it, particularly if you’ve put a lot of work into the house and everything is in perfectly good shape, it can be one of those things that gives people a warm, fuzzy feeling when they’re getting ready to make an offer.
How Does a Home Warranty Work?
If something breaks down in the house, such as the air conditioner or the washer and dryer, the homeowner calls the home warranty company. The home warranty company then sends out a local technician (an expert in the field, whether it’s HVAC or refrigerator repair) and the homeowner pays a flat fee for the call. The home warranty company then covers the costs for parts and labor so all the homeowner forks over out of pocket was the original fee.
How Much Does a Home Warranty Cost?
On average, home warranty plans cost between $400 and $600 for a year of coverage. That means a relatively small investment from you could go a long way to sweeten the deal for buyers.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.