Home inspections can change the course of a real estate transaction. What felt like a straightforward transaction before can suddenly be bogged down with repair requests, price negotiations, and second thoughts on both sides. Thankfully, one of the fastest ways to untangle this situation is by offering a home warranty as part of the transaction. While a home warranty is not a solution for everything that an inspection can uncover, it can give buyers and sellers a practical way to resolve some results of an inspection.

Home Warranty vs. Home Inspection: What's the Difference?

A home inspection is an assessment that determines a property's current condition. A licensed inspector evaluates the home's systems and structure, documents their findings, and reports them to both the buyer and the seller, regardless of what they find. This report serves as a snapshot of the home at that point in time.

A home warranty is a service contract that covers the cost of repairing or replacing covered home systems and appliances that break down due to normal wear and tear after closing. It is not intended to replace repairs for known problems identified during an inspection. Instead, it can help provide protection against the cost of future covered breakdowns of systems and appliances that are functioning at the time of the transaction.

While a home inspection looks at the present condition of a home, a home warranty helps you prepare for the future.

What Types of Inspection Findings May Lead to a Home Warranty Discussion?

Not every inspection will result in red flags that require a seller to make repairs or a buyer to walk away. Some inspections simply reflect the age of a home, such as an HVAC system that has been there for 15 years, a water heater approaching the end of its expected lifespan, or kitchen appliances that show normal wear from daily use.

These are exactly the kinds of situations where a home warranty can become a critical layer of support a homebuyer needs. The items that are working today might not be working a year from now, and a home warranty may help cover eligible repairs or replacements for covered systems and appliances

How a Home Warranty Can Fit Into Post-Inspection Conversations

When an inspection reveals functional systems that show signs of aging, buyers commonly ask sellers to repair or replace them. Sellers, in turn, push back, especially when the items in question are still working.

A good middle ground to this kind of potential impasse is a home warranty. Instead of replacing a functioning water heater or HVAC system, the seller can agree to include a home warranty as part of the transaction, so the buyer has coverage if those items break down after closing. The home warranty can be added at any point during the transaction, including during the listing.

While this does not solve every negotiation and should never be used to sidestep disclosure of known issues or as a promise to take care of everything, a home warranty can be the solution you need for issues surrounding aging systems or appliances.

Add Confidence After the Inspection With APHW

APHW home warranties let buyers choose their own licensed contractor for covered repairs, so they don't have to wait for an assigned technician when something breaks down. Our standard coverage includes 26 home systems and appliances, with optional add-ons available.

Visit the APHW Real Estate Warranties page to learn more or get started.

Terms and conditions apply. Coverage varies by plan. Refer to your service agreement for full details.

Frequently Asked Questions

Can a home warranty be negotiated after the inspection report?

Yes, you can purchase a home warranty throughout the transaction process, including after the inspection is completed. It’s common to bring up a home warranty in response to the findings of an inspection of any home with aging, yet functional systems or appliances.

Why might a real estate agent suggest a home warranty after inspection?

When buyers and sellers get caught up in whether or not one side should be responsible for the cost of repairing or replacing an appliance or system, a home warranty is a great compromise for both sides to give the buyer peace of mind and allow the seller to avoid unnecessary expenses. Instead of a home inspection stalling the negotiation process, a real estate agent can suggest a warranty to give the buyer confidence without requiring the seller to replace something that still works.

Should sellers include a home warranty when listing a home?

Yes. A seller-paid home warranty signals to buyers that the seller is considering their needs by preemptively offering something concrete to help after closing. It can also make a listing more appealing, reduce buyer hesitation about older systems and appliances, and give real estate agents a strong talking point when marketing the property. Including a warranty from the get-go also removes it as a negotiating chip later, which can make the transition smoother for everyone involved.