Offering a Home Warranty as a Seller – Pros and Cons.

✅ Pros of Offering a Home Warranty as a Seller

1. Boosts Buyer Confidence

• Makes the home feel like a safer bet, especially if it’s older or has aging systems.

• Reduces concerns over “what if something breaks after I move in?”

2. Differentiates Your Listing

• It can be a subtle advantage that sets your property apart in a crowded market.

• Some buyers see it as a bonus, especially first-timers.

3. May Help Close the Deal

• Could tip the scale during negotiations or even justify a slightly higher asking price.

• Makes the buyer feel like the seller is being thoughtful and proactive.

4. Minimizes Post-Sale Disputes

• If something breaks after closing, the buyer is more likely to call the warranty company instead of you.

5. Can Be Inexpensive

• Basic plans usually cost $350–$600 for a year, and the seller only pays at closing (if the home sells).

❌ Cons of Offering a Home Warranty

1. Limited Coverage

• Not everything is covered, and claim denials can leave the buyer feeling frustrated — which might reflect back on you.

2. May Not Sway Savvy Buyers

• Experienced buyers or investors may not care about warranties at all.

3. Potential False Sense of Security

• Some buyers may assume everything is covered, only to find out otherwise — which could lead to post-sale tension.

4. Some Plans Have High Service Fees

• Even though the seller pays for the plan, the buyer still pays per service call (typically $75–$100), which might come up later as a surprise.

5. You Might Already Be Covered

• If the home has newer systems with existing manufacturer warranties, it might be redundant.

🧠 Quick Tip:

If you do decide to offer one, make sure:

• You choose a reputable provider (some have poor customer service).

• You disclose exactly what the plan covers during negotiations.

• You let the buyer pick the provider if they have a preference — makes it feel more like a gift than a marketing ploy.