Resale Home Warranties Help Builders Sell New Homes

April 29, 2015

White House with Blue Windows

Yes, it is true!  Let’s face it, builders have a lot of competition in today’s market.  Buyers have plenty to choose from when looking at new home construction.  Neighborhoods, builder reputation and styles are among the many things taken into consideration when choosing a new home. If you are looking for a tool that will help you stand out from your competition, consider a Resale Home Warranty.

At this point you are probably thinking “What are they talking about?  How can a Resale Home Warranty help me? “Many of the home buyers in today’s market are move-up buyers. They have homes to sell so that they can purchase a new home.  To purchase your new home, they may have to make their purchase contingent on the sale of their current property.  The contingency of the sale of their listing is a great opportunity for you to assist them in their move to your new home.
  • building dream homeIncrease the value of their resale home to increase the opportunity of selling it fast, removing contingencies

When your buyer writes a contingency contract on the sale of their home to purchase yours, you can offer the incentive of paying for a warranty on their resale home to help sell it faster.  The quicker their resale listing sells, the sooner you sell a newly constructed home to them.  In addition to this incentive of making their home stand out in a competitive market, it also protects them during the time that their house is listed.  Should they have an unexpected failure on a system in their listed home, they would be out of pocket only the amount of the Service Call Fee.  This prevents them from having an extravagant cost which could bump them out of qualifying for a new home with you.

  • Protect their assets while they have their home listed so they don’t run into any large out of pocket expenses before purchasing your home

Most home warranty companies offer resale coverage for a minimal fee during the listing period. If the property doesn’t sell, and your buyers are unable to purchase your new construction home, you would have minimal investment at risk.  However, when their resale home does sell, and they purchase your new home, your marketing cost of this Resale Warranty will be paid at closing.  This strategy assists you in your sale by helping your future homeowner market their property, which in turn sells your home.

  • Builder pays for the Resale Warranty on a prospective customer’s home if their home sells and the prospect buys a new home from the builder

This is a win-win opportunity for builders to have one more marketing tool in their tool box!   Consider the increased value to your customers when offering just one more positive way to help them move up to your new home.  Make the move to market above your competition.  Resale Warranties are a great way to help your New Homes SELL!