Should You Offer a Home Warranty When Selling?

If you're preparing to sell your home in Auburn or Opelika, you might be wondering if offering a home warranty could help your listing stand out. A home warranty can be a smart tool to ease buyer concerns, especially in competitive markets—but it’s not always necessary.

As a local real estate expert, I often get asked if offering a home warranty is worth the cost. Here's what you need to know before deciding.

What Is a Home Warranty?

A home warranty is a service contract that covers the repair or replacement of major systems and appliances in the home, like:

HVAC systems
Electrical and plumbing
Water heaters
Kitchen appliances

It’s different from homeowners insurance, which covers damage from fire, storms, or theft. A warranty focuses on wear and tear of working components.

Why Sellers Offer Home Warranties

1. Attract More Buyers

Offering a warranty can give buyers peace of mind, especially if your home has older appliances or systems. It shows that you're proactive and confident about the condition of your home.

2. Helps During Negotiations

If an inspection reveals minor issues, a home warranty can sometimes help keep the deal on track by providing future coverage instead of immediate repairs.

3. Adds Value Without a Big Price Drop

For a few hundred dollars, you’re offering the buyer protection that could prevent them from requesting a price reduction. It can be a nice incentive that doesn’t break your budget.

4. Coverage While Your Home Is Listed

Many warranty companies also offer free coverage for sellers during the listing period, which could protect you from repair costs before closing.

Possible Downsides to Consider

Not all buyers care about warranties—especially in a seller’s market
Warranties have limitations, and not every repair is covered
Buyers might still request repairs even with a warranty in place
If appliances or systems are in poor condition, a warranty won’t always cover them

How Much Does It Cost?

Most home warranties cost between $500 and $900 for a one-year plan. Coverage can vary, so it's important to read the fine print and understand what’s included.

When a Home Warranty Makes Sense

A home warranty is often worth offering if:

Your home has older appliances or systems that are still working
You want to attract first-time buyers who may worry about repair costs
You’re selling in a competitive market and want to stand out
You want to reduce post-sale headaches and avoid repair disputes

Final Thoughts: Is a Home Warranty Worth It?

In many cases, yes. A home warranty can ease buyer fears, protect your home during the selling process, and even help you close faster.

It’s a small investment that can make a big difference—especially when marketed as part of your listing. If you’re unsure whether it makes sense for your home, I can help you weigh the pros and cons based on your unique situation.

Rozi Dover
Your Trusted Real Estate Expert in Auburn and Opelika, Alabama
Phone: +13346630077
Email: rozi@mindspring.com
Website: www.auburn-opelikahomes.com

Posted by Rozi Dover on May 29th, 2025