When you’re trying to sell your home, you may come across a few terms and requests from buyers. One of which may be a home warranty. But what does it mean when a buyer asks for a home warranty?

A home warranty is significant in the real estate transaction process. Let’s find out why.

What is a home warranty, and why do buyers want one?

A home warranty is a service contract that provides coverage for the repair or replacement of major appliances and home systems. It’s typically offered by a third-party company—separate from the homeowners insurance policy. 

Home warranties go into effect after the purchase of a home, and they usually last for a specified period, often one year, with the option to renew.

Why do buyers ask for a home warranty?

  • Budget Protection
    • Buyers ask for a home warranty to protect themselves against unexpected repair or replacement costs. Purchasing a home is a significant financial investment. And unexpected repairs can strain a homeowner’s budget. A home warranty offers security and peace of mind, with the knowledge that if a covered system or appliance breaks down, the buyer won’t have to foot the full financial bill alone.
  • Convenience
    • Home warranties simplify the process of getting repairs done. Some home warranty providers can arrange for a qualified service technician to assess and fix the issue, while other providers give homeowners the freedom to choose their own licensed contractor, allowing them to find someone local that they know and trust, and schedule visits when it suits them.
  • Attraction to First-Time Buyers
    • Home warranties can be particularly appealing to first-time homebuyers who may not have experience dealing with home maintenance issues. It provides a safety net during the adjustment period of homeownership.

What does a home warranty cover?

The specific coverage of a home warranty can vary depending on the provider and the plan selected.

However, most standard home warranty plans typically cover the following:

  • Water heater
  • Washer and dryer
  • Plumbing system
  • Electrical system
  • Kitchen appliances (e.g., over, dishwasher, refrigerator)
  • HVAC (Heating, Ventilation, and Air Conditioning) systems

 

Modern front-loading washer and dryer set in a bright laundry room, showcasing energy-efficient appliances for convenient home care.

 

Pro tip: While home warranties cover these items, they don’t cover everything. And they may not cover pre-existing conditions, cosmetic issues, or items that have failed due to neglect or misuse.

What does it mean? Protection!

When a buyer asks for a home warranty, they’re seeking financial protection and peace of mind against unexpected repair or replacement costs for major appliances and home systems.

This makes a home warranty a valuable addition to real estate transactions, especially for first-time homebuyers or those looking to safeguard their budget. Ultimately, a well-chosen home warranty can help buyers transition into homeownership with confidence and financial security.

Did your buyer request a home warranty? Share how it helped your sale on our Facebook page!