How home warranties can help sell a home

David M. Brown, Special to the Republic 2:57 p.m. MST January 9, 2015

Home warranties are a way for home sellers to set themselves apart from others in the market.(Photo: ListerAssister)

Sure, the West Valley is building new homes, existing-home values are rising and credit is easing even with stricter federal lending guidelines.The standard mortgage rate is still historically low.

But properties are still not selling as briskly as many had hoped, the market has flattened, and sellers and buyers of West Valley real estate are searching to make a deal at their best advantage.

Some suggest that one way to distance your for-sale home from others on the market, or to better hedge your new investment, is to acquire a home warranty.

Available from a variety of companies, these home protection plans cover the costs of repair or replacement for many components and appliances such as refrigerators, washers, dryers, dish washers, heating, air conditioning and plumbing, electrical, water heaters, garage door openers, pool motors and other items.

"Our research already shows that homes with an American Home Shield home warranty sell faster and at a higher price point than those without a home warranty," said Nicole Ritchie, senior director of communications, for American Home Shield, a Memphis, Tenn.-based company founded in 1971 which offers these home-protection plans.

The company says homes with warranties have an average of 11 fewer days on the market and sell for $2,300 more than those without.

A business unit of ServiceMaster GlobalHoldings, Inc. (NYSE: SERV), American Home Shield serves 1.5 million-plus customers in 50 states.

Sellers and buyers both can benefit from the "peace of mind" of a home warranty at a high-stress time when little items can become big concerns. Calling a reputable warranty company, after all, can be easier than finding tradespeople yourself.

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How home warranties can help sell a home