Short Answer
Offering a home warranty can make your listing more attractive to buyers, especially first-time buyers. A home warranty covers major systems and appliances for the first year after purchase, giving buyers peace of mind. The cost is typically $400 to $600 for the first year and can be a small price to pay for reducing buyer anxiety about unexpected repairs.
A home warranty is a service contract that covers the repair or replacement of major home systems and appliances, including HVAC, plumbing, electrical, water heater, refrigerator, oven, dishwasher, and sometimes the washer and dryer. When you offer a home warranty as a seller, you pay for the first year of coverage. This can be an attractive selling point because it reduces the buyer's risk. If the HVAC system fails a month after closing, the buyer is covered. For sellers, a home warranty can also protect you from post-closing disputes. If something breaks shortly after the sale, the buyer goes to the warranty company rather than coming back to you. Most home warranty companies offer a range of plans, from basic appliance coverage to comprehensive system and appliance coverage. Talk to your agent about whether offering a home warranty makes sense in your market and price range.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I see home warranties as cheap insurance for both parties. For $400 to $600, you remove a common objection and give buyers confidence. I have seen transactions where a home warranty was the deciding factor between two similar offers. It is a small investment that can make a big difference in how buyers perceive your home. Let us discuss whether it makes sense for your specific situation.
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