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 Buyers vs Sellers Incentives To Buy a Home Warranty In US

Buyers vs Sellers Incentives To Buy a Home Warranty In US

Who Pays for a Home Warranty?

Homebuyers, sellers, homeowners, or renters can purchase home warranties. People often buy them alongside a home purchase, but they can also be purchased at any time.

Who Pays for the Home Warranty in a Real Estate Transaction?

In a real estate transaction, the buyer or seller may pay for the home warranty. The decision of who pays typically depends on the market conditions. In a seller’s market, the buyer may be more likely to pay for the home warranty. In a buyer’s market, the seller may be more likely to pay for the home warranty.

Buyer and Seller Incentives

Buyer and seller incentives are perks that both parties can offer during the home-buying process. These incentives can help to get the seller’s home off the market while providing the buyer with a better deal.

Some common buyer and seller incentives include:

  • Closing cost assistance: The seller may agree to pay for some or all of the buyer’s closing costs. This can save the buyer thousands of dollars.
  • Price reduction: The seller may agree to reduce the sale price of the home. This can also save the buyer money.
  • Home warranty: The seller may agree to purchase a home warranty for the buyer. This will cover the cost of repairs or replacements for covered appliances or systems.

Benefits of a Home Warranty for Buyers

Homebuyers can benefit from a home warranty in a few key ways. First, a home warranty can help buyers save money on appliance and home systems repairs. Second, a home warranty can give buyers access to pre-vetted contractors. This can be especially important if buyers are moving to a new area or don’t already have a group of trusted contractors.

Benefits of a Home Warranty for Sellers

Sellers can derive several key benefits from a home warranty. Firstly, a home warranty enables sellers to maintain the property “as is” until the deal closes. Secondly, sellers can experience peace of mind by purchasing a home warranty to cover potential breakdowns of appliances or systems while the home is listed or under contract. Lastly, sellers can employ a home warranty as an enticing incentive to attract buyers.


Home warranties can be a valuable asset for both buyers and sellers. They can help buyers save money on repairs and give sellers peace of mind.

Whether or not to purchase a home warranty is a personal decision, but it is important to weigh the pros and cons before making a decision.

Here are some additional tips for buyers and sellers considering a home warranty:

  • Buyers: Be sure to read the terms and conditions of the home warranty carefully before purchasing it. Ensure that you understand what is covered and what is not covered.
  • Sellers: Consider purchasing a home warranty if you are in a seller’s market. This can help you attract buyers and sell your home for a higher price.
  • Both buyers and sellers: Compare quotes from different home warranty companies before you purchase a policy. This will help you find the best coverage for your needs and budget.

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