Should Sellers Offer a Home Warranty? (Home Seller’s Edition)

Home warranty's provide money-saving repairs and reduce anxiety from buyers after inspections.

When you're selling a home—especially an older one—you want to give buyers confidence without giving away the farm. One smart strategy that’s often overlooked? Offering a home warranty as part of the sale.

While buyers are the ones who use the warranty, sellers can gain a real advantage by including one upfront.

What Is a Home Warranty?

A home warranty is a service contract that helps cover the cost of repairs or replacements for major home systems and appliances due to normal wear and tear. Think furnaces, water heaters, air conditioning units, electrical systems, and appliances like washers, dryers, and ovens.

It’s not homeowner’s insurance—it doesn’t cover fire, theft, or structural damage. Instead, it covers the kinds of issues that tend to arise once someone moves in.

Why Offer a Home Warranty as a Seller?

✅ Boost Buyer Confidence

Buying a home can be scary—especially if it’s older or if the buyer is stretching their budget. A home warranty can help put buyers at ease, knowing they’re protected if something goes wrong shortly after closing.

✅ Make Your Listing Stand Out

Including a home warranty in your listing gives it a marketable edge, especially in competitive markets. Buyers might be more likely to choose your home over a similar one that doesn’t offer added protection.

✅ Help Justify Your Asking Price

If your furnace is 15 years old or the appliances are showing some age, buyers may try to negotiate the price down. Including a home warranty can help prevent that by offering peace of mind without lowering your bottom line.

✅ Reduce Post-Inspection Negotiation Drama

It’s common for buyers to request concessions after a home inspection. But if you’ve already included a home warranty, it can act as a buffer. Rather than asking for a $3,000 credit for an aging water heater, the buyer may accept that the warranty will cover it if it fails.

✅ Low Cost, High Impact

Most home warranties cost between $500 and $1,000 for a one-year policy. Compared to major price reductions or repair requests, that’s a small investment that can keep your deal moving forward.

Bonus: Home Warranty Coverage During the Listing Period

Some warranty companies even offer limited seller coverage while your home is on the market. That means if a major system breaks before closing, you might be covered too. (Policies vary—check the fine print.)

When It Makes the Most Sense To Provide A Home Warranty

Offering a home warranty is especially beneficial when:

• Your home is more than 10–15 years old

• Your HVAC, plumbing, or appliances are functional but aging

• You want to reduce buyer hesitation or eliminate price-haggle points

• You’re listing in a buyer’s market and need to differentiate your home

  
  
  
  

Where & When To Purchase A Home Warranty

Home warranty's can help close the deal.

Start with your listing agent. Offering a home warranty upfront and advertising it in your MLS listing adds a built-in selling point from day one. Many brokerages already have established relationships with home warranty companies—or even offer their own in-house product.

That said, it’s important to clarify:

Your agent does not receive any kind of commission or kickback if you purchase a home warranty. In fact, in Pennsylvania (and most other states), it’s illegal.

Buying a home warranty through your brokerage may also qualify you for a discounted rate compared to purchasing one directly.

And of course, you can always shop for one on your own. Personally, I recommend comparing rates online to find the best deal. Before purchasing a warranty through your brokerage, take a few minutes to research home seller-specific plans—these are often priced lower than standard consumer offerings.

You've probably seen ads on TV for home warranties. While brands with national name recognition might boost buyer confidence, the easiest way to get started is by discussing your options with your listing agent. They'll know which providers are reputable and which plans align with your home's needs.

Final Thoughts

Offering a home warranty won’t fix every issue—but it can help protect your deal, strengthen buyer trust, and make your listing more appealing. It’s a small expense that can deliver real peace of mind—for both parties.

Pro Tip: Work with your real estate agent to identify a reputable home warranty provider and the right level of coverage based on your home’s age and systems.

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