It’s hard to remember a time when you bought a car without a warranty. While a car makes up a significant portion of any household’s expenses, a home is for most people the largest purchase they will make. And yet homes are bought without warranties. Not anymore!
Although the law protects the buyer from a seller hiding defects, enforcing your legal rights is expensive and time-consuming. For a new homeowner, time and money are the two things they don’t have when the roof is leaking and the trusses are giving in.
Even if you can prove to a court that the seller knew or should have known about the defect, the harsh reality is that the seller might not have the cash to meet their liability.
“When designing this product, we were acutely aware of the uninsured losses on standard homeowner’s insurance products and how disappointed customers are when they discover that defects to the building are not covered,” says Lee-Ann Dobrescu, Head of Group Business Development at Hollard. “
So why sell or buy a home with a warranty?
- Buyers love it! - It’s all about peace of mind, which is something mostly absent when buying a home. Given the financial quantum, it is up there in the list of most stressful things you can do. Like car manufacturers who compete on the terms of their warranty, home sellers are competing for the attention of buyers. A warranty is a significant way to differentiate your home and attract more buyers.
- Speed up the selling process – There is no need for the buyer to get a 2nd opinion
- Unlock Value – By breaking down the inherent mistrust in a property transaction where the buyer assumes the seller is hiding something the buyer can make their best offer. They can afford to fall in love with the house, knowing there aren’t any surprise defect-related expenses that they need to build a buffer for.
- Peace of mind – Buyers who make offers subject to a Hollard Home Warranty being approved do not need to spend sleepless nights worrying about what they don’t know about the property or did not check - no post offer regret.
Make sure that the home you are buying is free of defects, and if anything unexpected does crop up, you’re protected from the financial implications. Hollard’s Home Warranty addresses the issues around defects with a professional property inspection that is coupled to an insurance policy. This protects both buyer and seller against the financial ramifications of any hidden defects that may emerge in the property for two years after transfer. And the cost of the warranty can be covered from the proceeds of the sale – all you have to do is ask for it in your Offer to Purchase!
A Hollard Home Warranty should be attached to the ‘for sale’ sign of every well-maintained home for peace of mind and the best possible outcomes for all parties concerned.