A home warranty can be a wonderful thing. It can also be a confusing one. What is a home warranty? What does a home warranty cover? How does a home warranty work? And most importantly, who pays for a home warranty, buyer or seller? There are a lot of questions to answer, and understanding who pays for a home warranty isn’t always crystal clear.

As a home buyer or seller, it’s nice to know how home warranties work and which party generally pays for the home warranty. While there isn’t necessarily one right answer, there are some common practices when it comes to paying for a home warranty.

Who Pays for a Home Warranty?

Sometimes a home warranty is involved when you buy a home. When a home is purchased, who pays for the home warranty: buyer or seller? Often, a home warranty is purchased by the seller and transferred to the buyer. The reasoning is that the seller does not want to be called on if something breaks down. If you buy a home through a real estate agent, they might throw in a home warranty plan as an added perk when you close.

What If You Purchase a Home Without a Home Warranty?

You can purchase a home without a home warranty. Just know that if something goes wrong with appliances or systems, you might be paying for it out of pocket. If the seller doesn’t offer a home warranty along with the purchase of the home, don’t worry. As a buyer you can always contact a home warranty company on your own and purchase a plan. Talk to them about your specific needs and they’ll find the best plan for you. At HSC Warranty, we’re happy to help with this.

Should You Purchase a Home Warranty as a Seller?

If you’re selling your home on your own without a real estate agent, it might be beneficial to purchase a home warranty. Why? Because it gives buyers more peace of mind when they are considering buying your house. Including a home warranty with the purchase of your home will act as an additional selling point. It could give potential buyers added confidence to purchase and could really help eliminate any hesitation they might feel.

Should You Purchase a Home Warranty As a Buyer?

If a home warranty isn’t included in the purchase of your new home, you might still consider getting a home warranty plan yourself. It doesn’t hurt to ask the seller if they can include a home warranty when they sell you the home. If they don’t, it may still be in your best interest to purchase your own plan and shield yourself from expensive repairs.

Should You Purchase a Home Warranty as a Real Estate Agent?

Having a home warranty plan for a home you’re selling as a real estate agent is a good idea. Often, buyers worry about potential repairs and maintenance that will pop up down the road. If you can provide them some reassurance with a reliable home warranty plan, it’ll help you better serve them as your clients.

How Should You Proceed?

Who pays for a home warranty? Buyer? Seller? Agent? It depends. But whether you’re selling your home “for sale by owner,” you’re a real estate agent, or you’ve recently purchased a home, you should be thinking about a home warranty. Home warranties for rentals are also available. And remember that it’s also important to renew your home warranty and have a regular inspection of your home systems to make sure they’re running well. If you want to get started with a home warranty, feel free to contact us or request a free quote.

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