Should I Offer a Home Warranty When Selling?

What Is a Home Warranty and Should You Offer One When Selling?

If you’re preparing to sell your home, you might be wondering whether offering a home warranty makes sense. While not required, a home warranty can be a powerful incentive for buyers—and a smart move for sellers looking to close with confidence.

Let’s take a closer look at what a home warranty is, what it covers, and whether it’s worth offering as part of your home sale in Central Florida.

Overview: Understanding the Value of a Home Warranty in a Sale

Key Points:

What a Home Warranty Covers
How It’s Different from Homeowners Insurance
Why Sellers Might Choose to Offer One
How Buyers Benefit from a Home Warranty
Cost vs. Value: Is It Worth It?

1. What a Home Warranty Covers

A home warranty is a service agreement that covers the repair or replacement of major home systems and appliances due to normal wear and tear. This often includes:

HVAC systems
Plumbing and electrical
Water heaters
Kitchen appliances

Warranties typically last one year, and buyers can often renew them afterward.

2. How It’s Different from Homeowners Insurance

Homeowners insurance covers unexpected damage, like storms or fires. A home warranty, on the other hand, covers breakdowns due to age and use, like a dishwasher quitting a month after move-in.

3. Why Sellers Might Choose to Offer One

Providing a warranty can:

Make your home more attractive to buyers
Offer peace of mind for both parties
Reduce post-sale disputes if something breaks shortly after closing
Help homes stand out in a competitive market

4. How Buyers Benefit from a Home Warranty

Buyers may feel more confident making an offer knowing they won’t immediately face costly repairs. This is especially helpful for first-time homebuyers or those stretching their budget to buy.

5. Cost vs. Value: Is It Worth It?

Home warranties typically cost $350 to $600 and can be paid by either the seller or buyer. In many cases, the added reassurance to buyers helps the home sell faster and can make a difference in negotiations.

Conclusion

Offering a home warranty isn’t required, but it’s often seen as a smart, low-cost way to increase buyer confidence and reduce risk after closing. If you’re listing your home in Central Florida, talk with your real estate agent about whether including a warranty makes sense for your sale.