Selling a home comes with many decisions, and one of the most overlooked yet potentially valuable options is purchasing a home warranty. While many buyers consider home warranties to protect themselves after purchasing a property, sellers can also benefit from having a home warranty in place before and during the sale process. But is it worth the investment?
This guide will explore how a seller’s home warranty works, what it covers, how much it costs, and why it could be a smart move when selling your home.
A seller’s home warranty is a service contract that helps pay for repairs or replacements of major home systems and appliances while the home is for sale. This warranty, unlike the one a buyer purchases after closing, protects the seller from unexpected repair costs before the sale is complete.
Seller’s home warranties are ideal for older homes with aging systems and appliances. If something breaks while the home is listed for sale, the warranty can help cover the repair costs. This reduces the chances of last-minute expenses that could delay the closing or cause renegotiations.
The cost of a seller’s home warranty varies depending on the provider, the level of coverage, and the location of the home. On average, sellers can expect to pay between $300 and $600 for a basic policy, with optional add-ons increasing the price.
Factors that influence the cost include:
In addition to the upfront cost of the policy, sellers should be aware of service call fees, which typically range from $75 to $150 per claim. These fees apply whenever a technician is dispatched to assess or repair a covered item.
A seller’s home warranty typically covers major household systems and appliances, but coverage details vary by provider. Most standard plans include protection for essential home components that could break down due to normal wear and tear.
Commonly covered items include:
While a home warranty provides valuable protection, it’s important to review the policy carefully. Some items may not be covered, and pre-existing conditions or improper maintenance can result in claim denials. If applicable, sellers should also consider optional coverage for items like pools, spas, or well pumps.
A seller’s home warranty offers multiple advantages that can make the selling process smoother and more cost-effective. Here are some of the key benefits:
Buyers often feel more confident purchasing a home with a warranty in place. It reassures them that if something breaks after moving in, they won’t be stuck with expensive repairs. This added peace of mind can make the home more appealing in competitive markets.
If an appliance or system fails soon after the home is sold, a home warranty can help cover repairs, reducing the risk of the buyer blaming the seller for undisclosed issues. This can help prevent legal disputes and maintain a smoother transaction.
Selling a home can be expensive, and unexpected repair bills can add to the financial burden. A home warranty helps cover repair or replacement costs if something breaks while the home is on the market.
One of the biggest advantages of a seller’s home warranty is that it can often be transferred to the buyer upon closing. This means the buyer will receive continued coverage for a set period, usually one year after the sale.
Here’s what sellers should know about transferring a home warranty:
Before purchasing a home warranty, sellers should confirm the transferability details with their provider to ensure a smooth handoff to the new owner.
A seller’s home warranty isn’t mandatory, but it can be a wise investment, particularly if:
A seller's home warranty can help when selling your house. It protects against unexpected repairs, attracts buyers, and can reduce disputes after the sale. Although it comes with a cost, the benefits — like increased buyer confidence and less financial risk — often make it worth it.
If you're getting ready to sell your home, look into the best home warranty providers to find a plan that fits your needs. Investing a little now can make the selling process easier and more rewarding later on.
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