Benefits of a Home Warranty

Home Warranty Benefits buying a home

Benefits of a Home Warranty

Benefits of a Home Warranty

Today we will learn about the benefits of a home warranty. Exploring what it does for the buyer, the seller and the real estate transaction 

Benefits to the buyer

The benefits of a home warranty to the buyer(s). The buyer receives the home warranty at the time of closing. The warranty includes appliances, mechanical systems and house systems normally for a period of a year. The coverage is for the event of a needed repair or replacement. This gives the buyer peace of mind as well as the ability to budget house expenses. The buyer is required to call the warranty provider in order to process the repair and claim. The cost of the repair or replacement is $100.00 for each separate repair. The savings can be substantial due to the fact that a new furnace can cost up to $5,000. This home warranty normally costs $450-600 and normally is paid by the buyer or negotiated within the contract for the seller to pay.

Benefits to the seller


The seller can purchase the home warranty as the result of a buyer request, namely the contract negotiation. However, the seller can decide to provide a home warranty at the time of the listing in the hope that the buyer will be more comfortable with the purchase. In the view of many buyers this is a positive concession. In reality this also eliminates the sellers from receiving any post sale requests for repairs.

Benefits for the real estate transaction

The home warranty can bring peace of mind to the buyers together with reducing post responsibility to the seller. In addition it can also be negotiated at the time of the inspection if the mechanical systems seem close to end of life. Surprisingly the home warranty can keep a real estate transaction together.

The Anderson Team recommends you give this consideration when you list and buy your home. Call us for more information or a sample of a home warranty.

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