As home prices rebound in a recovering housing economy, more sellers are purchasing extended home warranties to give themselves a competitive edge.
“Securing your home with an extended warranty is a great way to set yourself apart from other sellers,” says Tim Meenan, Executive Director of the Service Contract Industry Council. “Buyers seek out homes that are covered by an extended warranty because it can potentially save them thousands of dollars in post-sale home repairs.”
For the first time in seven years, a majority of the markets covered by realtor.com have switched from buyers’ to sellers’ markets. Sellers in many markets are receiving multiple bids, and bidding wars have broken out in the hottest areas. Rising prices are being driven by low inventories which have reached levels 20 or 30 percent lower than they were a year ago.
Despite the competition among buyers, many sellers are finding they can command even higher prices by buying a home warranty which is transferable to the new owner.
