Home Warranty

TLDR: In average markets, the buyer may ask the seller to pay for a home warranty for the first year, which is a type of insurance against interior issues such as leaks or appliance malfunctions.

If homeowner’s insurance is protection from major issues with the house, a home warranty protects against the smaller interior issues that arise. The coverage will vary depending on the plan selected, but often includes repairs or replacement for plumbing, appliance issues, or HVAC problems. All properties require regular maintenance, and the last thing you want is to close and move in only to have the stove stop working a week later. In markets that aren’t extremely competitive, we recommend asking the seller to pay for the first year of a home warranty.


Common issues that home warranties cover include:

With a home warranty, you can leave the handiwork to the professionals at minimal cost.

How does it work?

When you experience an issue, you submit a ticket with the home warranty company, and they’ll outsource the issue to a local repair company, who will contact you directly. It’s generally $100 just for the vendor to come inspect the issue, and the home warranty company typically covers any remaining balance.

When should I request a home warranty?

When the market is cooler and not hyper-competitive, it’s a good idea to ask the seller to pay for a home warranty, particularly if you’re a new home buyer and haven’t experienced the ongoing maintenance that accompanies homeownership. Before closing, you’ll have the option to select a home warranty regardless of whether you or the seller are footing the bill.

How much?

A standard home warranty usually ranges from $400-600 for a year of coverage.