Home Warranty for Sellers

If a real estate agent is suggesting you include a home warranty as a seller concession, the honest answer is: home warranties cost sellers $400-$800 and cover major systems for the buyer's first year. Effective marketing tool in buyer's markets or on older homes. Usually unnecessary in strong markets. Compare to equivalent price reduction before deciding.

Okoniq Property Hub stores warranty documents so future warranty claims are documented.

What's a home warranty?

Service contract covering:

• Major appliances (fridge, dishwasher, oven, washer/dryer)
• HVAC systems (heating, cooling)
• Plumbing (leaks, water heater)
• Electrical systems
• Sometimes: roof leaks, pool equipment, well pump

For a fixed monthly or annual fee, covered issues get repair or replacement (with service call fee, typically $75-$150 per call).

What it costs

Seller-purchased warranty (for buyer):

• Basic plan: $400-$550
• Enhanced plan (more coverage): $600-$800
• Coverage: 1 year from close

Buyer-purchased warranty:

• Same cost, buyer pays
• Often continues after year 1 as ongoing service contract

When it helps sell

Buyer's market:

• Differentiates listing from competition
• Provides buyer peace of mind
• Cost-effective vs price reduction

Older properties:

• Buyers worry about aging systems
• Warranty removes some risk
• Justifies asking price

First-time buyer market:

• Buyers less confident about home maintenance
• Warranty provides safety net

When it doesn't help

Seller's market:

• Multiple offers make concessions unnecessary
• Buyers accepting without

New construction:

• Builder warranty already covers systems
• Additional warranty redundant

Very high-end homes:

• Buyers can afford repairs
• Warranty perception may seem cheap

The math comparison

Instead of $600 warranty, offer:

• $600 price reduction? No — buyer barely notices
• $600 closing cost credit? Slightly more visible
• $600 upgrade credit? Buyer might value more
• $600 warranty? Marketing value + tangible benefit

Warranty often wins as marketing tool.

What warranties don't cover

Common exclusions:

• Cosmetic issues
• Pre-existing conditions
• Structural issues (foundation, roof structure)
• Code violations
• Improper installation
• Normal wear beyond specified limits

Read fine print — coverage is narrower than advertised.

The warranty as marketing

Listing photos and descriptions can highlight:

• "Home warranty included — buyer peace of mind"
• Reduces buyer anxiety about older systems
• Compares favorably to competing listings

Some MLSs allow warranty as a specific search field, though few buyers actively filter.

The provider choice

Major providers:

• American Home Shield — largest, most established
• Choice Home Warranty — competitive pricing
• First American Home Warranty
• Fidelity National
• Home Warranty of America (HWA)

Compare:

• Coverage caps per item
• Service call fees
• Provider network
• Customer reviews

Track warranty details

Okoniq Property Hub stores warranty documents + contact info + claim history. Related: closing costs for sellers, staging your home to sell, selling in a slow market, repair vs price reduction, and the Buying & Selling hub.

Frequently asked questions

Can I buy warranty for myself after selling?

The seller-provided warranty covers the BUYER. Sellers don't retain benefits. If you're moving to a new home you're keeping (rental purchase or something), separate warranty needed.

Does warranty affect appraisal?

No — appraisers value based on comparable sales. Warranty is a service contract, not real property.

Should I buy warranty for a home I'm keeping?

Sometimes worthwhile for older homes with aging systems. For newer homes, cost may exceed benefit.

Not financial or real estate advice. Warranty value depends on property and market — consult your agent. Okoniq Property Hub keeps warranty records organized. Get started free.