Trying to sell a house in a tough market? Every small edge matters. That includes offering something many sellers overlook—a home warranty.
This small add-on can shift a buyer’s mindset. It turns your home from a maybe into a must-have. Buyers today are wary of future repairs. They want confidence in the systems and appliances they’re inheriting.
Offering a seller’s home warranty can be your quiet advantage. It doesn’t scream in the listing headline. But when a buyer asks what’s covered, you’ve got a strong answer.
Let’s unpack how a seller’s home warranty works and why it could help you close faster—and possibly for more money.
What is a Home Warranty?
A home warranty is a service contract. It covers repair or replacement of key systems and appliances that fail due to normal wear.
These might include HVAC systems, plumbing, electrical wiring, water heaters, and kitchen appliances. It’s different from homeowners insurance, which protects against disasters like fire or flood.
A home warranty is a safety net for unexpected breakdowns. You pay a set annual fee plus a small service call fee when requesting a repair. The warranty provider then sends a technician to diagnose and fix the issue.
Some companies, like American Home Shield or First American, offer tiered plans. These let homeowners choose coverage based on budget and needs.
In a real estate deal, the seller can purchase a warranty to cover the home during the listing. Once the home sells, that warranty typically transfers to the buyer. This gives both parties peace of mind during the entire transaction.
5 Reasons a Home Warranty Benefits Your Sale
Adding a home warranty might not seem like a big deal. But it can make all the difference during negotiations. Here are five clear reasons it helps.
Buyers May Ask for Homes With Warranties
Many homebuyers look for listings that offer added protections. A seller’s home warranty signals you care about the buyer’s experience.
Buyers often worry about what could go wrong after move-in. They’re investing a lot—emotionally and financially. Offering a home warranty answers those concerns without the need for costly repairs upfront.
Real estate agents know the value of peace of mind. Some buyers specifically request homes with warranties because it’s one less thing to worry about. It can even help your listing stand out from others in your price range.
If buyers are comparing two similar properties, the home with a warranty often wins.
It’s a Low Price With a High ROI
You don’t have to break the bank to offer a home warranty. Plans range from $300 to $700 for a year of coverage.
That small investment could save you thousands in lost offers or drawn-out negotiations. Buyers may feel more comfortable submitting full-price offers when they know they’re protected.
Even during home inspections, the warranty helps smooth over concerns. If something small is flagged, buyers might be less inclined to request repairs. After all, they know the warranty will kick in once the deal closes.
Compared to slashing your listing price or making big repairs, a home warranty is a budget-friendly bonus that can yield high returns.
A Home Warranty Transfers to the Buyer
Most home warranty providers allow the plan to transfer automatically after closing. That means the buyer continues the coverage without extra work.
It’s not just a temporary listing perk. The buyer gets value for a full 12 months or longer depending on the plan. That transferability makes it easier to position the warranty as a meaningful bonus.
You don’t have to convince the buyer to purchase their own plan. You’ve already handled that step. It’s a gesture of good faith that builds trust and simplifies the post-sale transition.
If the buyer runs into issues within the first year, they’ll contact the warranty company—not you. That protects your reputation and limits post-sale friction.
The Buyer Receives Additional Coverage Beyond Homeowners Insurance
Homeowners insurance doesn’t cover wear and tear. It kicks in only when something catastrophic happens, like a pipe bursting or a fire starting.
A home warranty fills that gap. It covers everyday failures—a leaking water heater, a stuck garbage disposal, or a faulty garage door opener.
That matters a lot to new homeowners, especially if they’ve spent most of their savings on the down payment and closing costs.
They may not be ready for surprise repairs. A warranty shields them from those costs during a fragile time. That kind of safety net makes buyers feel more confident about moving forward.
In a world where every repair feels expensive, a warranty brings budget certainty.
The Buyer Can Provide Immediate Access to Trusted Repair Pros
Most warranty companies have a network of vetted, licensed professionals. That’s a big deal to buyers who are new to the area or first-time homeowners.
They don’t have to spend hours researching electricians or plumbers. The warranty company handles that. All the buyer does is file a service request and pay a small fee.
Some companies even offer 24/7 support or video chat options to triage problems fast. That kind of support builds loyalty and prevents frustration.
When systems fail—and they eventually will—it helps knowing you have a plan. Buyers don’t want to start homeownership by playing contractor.
You’ve already given them a jumpstart by offering a warranty.
Personal Story: Real Life Proof It Works
I once watched a couple try to sell a three-bedroom in Overland Park. Beautiful home, well-kept, but it sat for weeks. Then their agent suggested adding a seller’s home warranty.
Within days, they had multiple showings. One couple made a full-price offer within 48 hours.
The buyers said the warranty made them feel more secure. They were worried about the HVAC unit, which was over 10 years old. Knowing they were covered sealed the deal.
A small change, but it changed everything.
Conclusion
Selling a home isn’t just about pretty staging or fancy upgrades. It’s also about trust. A seller’s home warranty builds that trust quickly.
It’s affordable. It’s transferable. And it reassures buyers when they need it most.
By adding this small benefit to your listing, you may close faster, face fewer objections, and create a smoother path to the finish line. Whether you’re working with a real estate agent or listing on your own, consider the value of peace of mind.
Want your home to stand out? Give it a warranty and let buyers walk in with confidence.
