Who Pays For Home Warranty: Buyer Or Seller?

Buying a new home is a huge investment and one that you want to protect.

A home warranty can help with that, but you might be wondering who pays for home warranty coverage – the buyer or the seller?

There is no right or wrong answer to this question, as it ultimately comes down to negotiation between the buyer and seller. However, the seller usually pays for the home warranty coverage.

Read on to learn more about home warranties, who pays for them, and how they can benefit both buyers and sellers in a real estate transaction.


Who Pays For Home Warranty?

A home warranty is something you should consider getting if you are buying a new home.

This will help cover the costs of having main appliances and systems serviced, repaired, and replaced. However, who pays for the home warranty: the buyer or the seller?

The right answer is that anyone can purchase a home warranty, including buyers, home sellers, previous homeowners, and even renters.

The regulations of your area will determine whether the buyer or the seller is responsible for paying for the home protection plan and home warranty coverage.

Since it is in the seller’s interest, it is common in many areas for the seller to be the one to pay for the home warranty.

Buyers can buy a home warranty plan either via the real estate agent who helped them buy the house or directly from a home warranty company

Many homebuyers will request that the seller cover the cost of the first year of a home warranty.

This benefits both parties as it gives the buyer protection and peace of mind while giving the seller a competitive advantage over other sellers who have not purchased home warranty coverage.

Read: How Do We Review Home Warranty Companies?

Read: Is Home Warranty Worth It?

Read: How Much Does A Home Warranty Cost Per Year?

How Do Home Warranties Work?

A home warranty is an insurance policy that helps cover the cost of repairing or replacing major appliances and systems in your home. 

The most common type of home warranty is a one-year protection plan that covers repairing or replacing items such as air conditioners, electrical systems, plumbing, and more.

Some home warranties also offer coverage for things like pools, septic systems, and guest houses.

Home warranty coverage typically starts at the time of purchase and lasts for one year. However, you can also find home warranty plans that cover you for up to 10 years.

When you file a claim with your home warranty company, they will send a technician to your home to assess the issue.

If they find that your home warranty plan covers the issue, they will repair or replace the item. 

If your home warranty does not cover the issue, you will be responsible for paying for the repairs yourself.

Bottom Line

To sum it up, the buyer is not obligated to pay for a home warranty, and the seller is not required to offer one.

However, in most cases, the seller pays for the home warranty as it is seen as an advantage to buyers.

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