Things You Need to Know About Home Warranties When Selling a House

When it comes to selling a house, homeowners are often looking for ways to enhance their property’s appeal and provide peace of mind to potential buyers. One effective strategy is to offer a home warranty.

A home warranty can protect buyers from unexpected expenses related to home repairs or appliance replacements. This blog post will delve into the essential things you need to know about home warranties when selling your house. So, buckle up, and let’s explore the world of home warranties!


Understanding Home Warranties

A home warranty is a contract that typically covers items such as HVAC systems, electrical systems, plumbing, kitchen appliances, and more. The coverage duration is usually one year and can be extended upon renewal.

Differentiating Home Warranties from Homeowners Insurance

Homeowners insurance primarily covers damage from perils like fire, theft, or natural disasters. A home warranty, on the other hand, focuses on mechanical breakdowns and failures of covered items due to normal wear and tear.

Benefits Galore: Why Offer a Home Warranty?

Now that we understand what a home warranty is let’s dive into why it can be a game-changer when selling your house.

Enhanced Marketability

Offering a home warranty can attract potential buyers who value the protection it provides for expensive repairs and replacements. It may give your property an edge over comparable homes on the market.

Increased Buyer Confidence

A home warranty provides reassurance to buyers, especially for older homes, by offering a level of protection against unexpected repair costs. Buyers may feel more confident making an offer knowing that they have coverage for potential system or appliance failures.

It Covers Repairs During the Listing Period

When you’re in the process of selling your home, the last thing you want is for unexpected repairs to throw a wrench into your plans. Fortunately, seller’s home warranties step in as a safety net during the listing period. These warranties provide coverage for a wide range of repair issues that may arise, from electrical and plumbing problems to appliance malfunctions and HVAC system breakdowns.

You can have peace of mind knowing that any unexpected repairs will be swiftly and professionally handled. Instead of worrying about the financial burden of these repairs, you can focus on showcasing your home to potential buyers and ensuring a smooth and successful sale.

Peace of Mind for Sellers Post Closing

As the seller, a home warranty can relieve stress by minimizing the possibility of post-sale disputes regarding repairs or replacements. It acts as a safety net, reducing the chances of unexpected financial burdens after closing the sale.

Costs and Coverage of a Home Warranty

The cost of a home warranty typically ranges from $300 to $600 per year, depending on the level of coverage and the size of the property. Additional coverage options for items like pools, spas, or well pumps may come at an extra cost.

Home warranties often have coverage limitations, exclusions, and specific terms. Pre-existing conditions or improper maintenance may not be covered. It is critical to review the contract carefully and understand what is included and excluded before purchasing a home warranty.

Choosing a Home Warranty Provider

Research and Compare

Research and compare different home warranty providers to find the one that offers comprehensive coverage for your specific needs. Read customer reviews, check ratings from reputable sources, and evaluate the provider’s reputation in the industry.

Understand Contract Terms

Carefully review the home warranty contract terms and conditions, paying attention to coverage limits, deductibles, service call fees, and claim procedures. Look for a provider that offers responsive customer service and a straightforward claims process.

Choose Reputable Companies

Select a home warranty provider that has a good track record, excellent customer service, and prompt claims resolution. Also, Cinch Home Services says that allowing buyers to choose their own home warranty company if they don’t prefer to be transferred to your service company gives them more flexibility and peace of mind.

Disclosing Home Warranties to Buyers

It is important to disclose the existence of a home warranty to potential buyers. Provide them with a copy of the warranty contract and explain its coverage, terms, and duration. Highlight the benefits of the home warranty, such as potential savings on repairs, peace of mind, and convenience.

Emphasize the coverage of major systems and appliances and how it can benefit the buyer in the long run. This works to your advantage when showing your house to potential buyers.

However, it’s important to note that some home warranty companies charge a fee to transfer the warranty from the seller to the buyer. Clarify who will be responsible for this fee, as it can vary.


When selling a house, offering a home warranty can be a valuable selling point that attracts potential buyers and provides them with peace of mind. Understanding the coverage, costs, and terms of a home warranty is essential for both sellers and buyers to make informed decisions.

By carefully selecting a reputable home warranty provider and effectively communicating the benefits to buyers, you can enhance your property’s marketability and facilitate a smoother sales process.

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