A Home Warranty = Peace of Mind

In my experience, clients appreciate closing gifts that bring them value, so I invest in a home warranty for my clients - both buyers and sellers.  It helps cap their risk on potential repair bills and to buys peace of mind around home systems and appliances, especially in the first year of ownership, or when selling a home with older components.

How could a home warranty be beneficial?

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• A home warranty is a service contract that can help pay to repair or replace major systems and appliances (HVAC, water heater, plumbing, electrical, kitchen appliances) when they fail from normal wear and tear.

• Instead of a surprise multi-thousand-dollar bill, you pay an annual premium plus a set service fee per visit, which makes costs more predictable for tight budgets and first-time buyers. There are many warranty vendors to choose from, including Fidelity National Home Warranty.

• The company vets their service providers, so you are not scrambling to find a contractor when something breaks.

Buyer benefits:

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• It protects against major failures in the first year when you may not know the age or condition of all systems and appliances, reducing the fear of “what if the furnace dies right after closing?”.

• This can be especially helpful for:

  • first-time buyers

  • buyers with limited cash reserves

  • buyers who aren't comfortable with home repairs

  • buyers who prefer to call one number for assistance

Why would a seller offer one to buyers?

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• Offering a warranty can ease buyer concerns about older systems, help keep negotiations on track, and makes your listing stand out in a softer (buyer’s) market.

• Some seller policies also cover you while the home is listed, so if something breaks before closing, the warranty may pay part of that repair instead of you paying fully out of pocket.

What to know before buying a home warranty:

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• Plans typically cost a few hundred dollars per year, plus a service fee (often around 75–150 dollars) per claim, so you need to weigh that against the age and condition of what you are covering.

• Not everything is covered. Improper maintenance or pre-existing issues can lead to denials, and satisfaction varies widely between companies, so reading the fine print and reviews is crucial.