Who Pays For A Home Warranty, A Buyer or Seller?

Home  >  Blog  >  Who Pays for a Home Warranty, a Buyer or Seller?

Who Pays For A Home Warranty, A Buyer Or Seller?

A home warranty is a service contract that covers repairs for particular home appliances and systems. It’s like a health insurance plan for appliances, and it also usually covers repairs for normal wear and tear. You may have to pay a service fee for the repair, but it won’t be as expensive as what you’d pay without the home warranty.

But who pays for this home warranty? This will depend on the situation, though the buyer and the seller may both have good reasons why they would be willing to pay for this service contract. It’s not a minor expense, as it can cost anywhere from $300 to $1000.

Reasons For Sellers To Pay For Home Warranty

Plenty of sellers purchase home warranties and offer it as part of the purchase when they list their house on the market.

  • It can act as an incentive, as the free cost of the warranty can attract buyers to look at the house. People just enjoy freebies. In fact, some real estate agents will provide home warranties to buyers as a come-on.
  • The home warranty also protects the seller from unwanted costs should any of the appliances break down before the house is sold.
  • The home warranty can be held as a potential solution if any potential buyer suspects that any of the appliances are getting too old or broken down.
  • Many how warranty businesses may offer more affordable or even free home warranties to sellers to provide to their buyers. This is because many buyers who get the home warranty end up buying the home warranty themselves for the next year.
  • Sellers also won’t have to worry about buyers calling regarding broken appliances, as the home warranty takes care of those problems.

As these reasons indicate, it’s simply sensible for many sellers to buy a home warranty when they decide to put up their home for sale. It solves a lot of problems and it offers numerous advantages.

Reasons For Buyers To Pay For Home Warranty

If the buyer doesn’t pay for the home warranty, sellers should also think about getting the service contract for themselves.

  • Like health insurance, home warranties can give buyers peace of mind. These contracts take effect at closing, and then they have a new year of free appliance repair should any of the appliances in the home unexpectedly breaks down. There won’t be any unexpected expenses for repairs.
  • It’s also a very good idea if the home is old, and so are the systems and the appliances. These things may no longer be covered by their manufacturer’s warranties, and these are the appliances that home warranties are meant to cover.
  • The home warranty also keeps you from contacting the previous owner to deal with the problem. It gives you a more certain sense of ownership. The house is truly yours now, and the problems are your responsibility. The fact that you have a home warranty to solve these problems certainly makes things a lot easier for you!

If you’re going to buy a home warranty as a seller or buyer, just make sure you check which appliances are covered and which types of damages are excluded.

Get Your Home Armor Protection Plan Today!

Never Worry About Home Repairs Again!