Home Warranty

TLDR: Offering a home warranty can be a gesture of goodwill as the property transfers from one homeowner to the next. 

What is a home warranty?

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 an annual subscription often includes repairs or replacement for plumbing, appliance issues, or HVAC problems. For new home buyers who may be cash poor after paying the down payment and closing costs, offering to pay for a home warranty out of the seller proceeds is a gesture of goodwill. 

In markets that aren’t extremely competitive, it's not uncommon for buyers to ask the seller to pay for a year-long home warranty.

How much?

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