When Lee-Ann Dobrescu, co-creator of Hollard’s Home Warranty, sold her home to buy another, she knew it was the perfect opportunity to put her creation to the test in the most practical way possible.
Hollard’s Home Warranty couples a professional property inspection with an insurance policy which protects both buyer and seller against the financial ramifications of any defects that may emerge in the property for two years after taking transfer.
“I am absolutely confident of the Home Warranty’s inherent value proposition and its ability to de-risk the property transaction for buyer, seller and agent. Being able to experience it practically in my own personal property venture was reaffirming. I did not expect the buy and sell process to happen as quickly as it did. With a home warranty in place on our existing home and the prospective one, it took just one month for us to sell and buy without anyone having to compromise on price or needs, and it unlocked an additional R140k for the seller of our new home,” explains Lee-Ann Dobrescu.
Looking for a change and to move closer to work, Lee-Ann and her husband had found the perfect property in Parkwood. With properties in the area in high demand it would not be on the market for long, but the couple had to sell their Emmarentia home first. Despite being built almost 80 years ago, it was well-maintained and after all the improvements they had done they wanted to unlock as much value in this home as possible. The race was well and truly on. They took out a Hollard Home Warranty on their home, and got ready to go to market with their best foot forward.
“I was confident that our home was well maintained and to the best of my knowledge it was free of any defects. The home inspection came back with a few minor repairs that needed attention. In one of the bathrooms, the uppermost built-in cupboards had covered a section of the wall that had been damaged by rain water leaking through the roof flashings. In ten years, we had never opened this cupboard as the height made it entirely impractical to get to, so we were unaware of what was hidden behind the doors. A few cracks also needed attention. Luckily these were minor repairs that cost very little to fix permanently.
“It struck me that had we not gone the route of a property inspection and warranty, and a potential buyer had seen the water damage in the cupboard which we were entirely unaware of, it could have created substantial mistrust. Typically, a disclosure list makes buyers warier of what else could be wrong with a property, and certainly something discovered that isn’t on a disclosure list even more so, even if the seller is genuinely unaware of them. Buyers will then tend to look for other problems where there really aren’t any, which inevitably compromises a property transaction in terms of what price buyers are willing to offer, and the time on market,” explains Lee-Ann.
The repairs were done and Lee-Ann was able to go to market with an immaculate home – a huge differentiator in a market where qualified buyers are in short supply. The home was sold after the first show day, at the price they wanted, and the buyer was delighted to be moving to a home with an inspection report and a warranty in place. As for the property in Parkwood, Lee-Ann and her husband were able to put their offer in subject to the conclusion of the sale of their property and of course, subject to a Hollard Home Warranty being approved.
“The buyer was adamant on a price R140k higher than what we were initially prepared to offer. When we reconsidered, we knew that it was worth the higher price as the home warranty essentially de-risked the purchase for us. With a long term view on the property the extra R140k would not be material, except if there were problems with the property. However, we could get the dream home that we really wanted, backed by the security of a home warranty to protect us financially if unseen defects did crop up later. The higher asking price didn’t really make a material impact on the monthly bond repayments. So we upped our offer by R140k, the deal went through, and every participant in the process got their price, and in record time.
Peace of mind comes standard with a Hollard Home Warranty When it comes to property transactions, the home inspection report backed with an insurance warranty puts paid to all the challenges around buying and selling a home by providing peace of mind, transparency and a fair playing field for everyone involved in the transaction. It’s a product that 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.