Frequently Ask Questions: Who Pays for Home Warranty?

Answering Common Questions About “Who” Pays for Home Warranty

As you go through the process of buying or selling a home, you may be wondering about the various costs associated with the transaction. From closing costs and homeowner’s insurance to prepaid costs and more, there are many factors to account for before closing day. So what about a home warranty? Is it required at closing, and who pays for it?

To the first question – the answer is that a home warranty is not typically required for a transaction to close. However, having a home warranty plan is a smart idea to ensure you have protection when home systems or appliances fail. As a HomeServices of America company, a Berkshire Hathaway Affiliate, Bennion Deville Homes partners with American Home Shield to offer industry-leading protection plans. Speak with your Bennion Deville Homes real estate professional for more details. Whether you are going through the purchase process now or have already closed, you can purchase a plan at any time.

Regarding “who” purchases the home warranty, there are a couple of things to note.

Does a seller need to pay for a home warranty?  

As a home seller, purchasing a home warranty for the buyer could be beneficial for a couple reasons. One of the biggest worries for buyers is the discovery of a major issue or something big failing and needing repairs or replacement. A home warranty makes your property more attractive for a buyer and gives them confidence knowing their major investment, and budget, are protected from covered system and appliance breakdowns.

If your house is on the market and you don’t have a home warranty, getting one could save you money in the event something breaks down before it sells. Presenting your home in the best condition possible to attract prospective sellers is always the goal. As a bonus, if a seller purchases a home warranty, that chosen coverage is effective while the home is on the market and then transfers to the buyer upon closing.

Can a buyer negotiate a home warranty into the cost of the home?

If you are buying a home, it is worth asking the seller if they will include a home warranty in the sale price. Having the seller cover the cost of a home warranty is one less thing to worry about as you go through this major milestone. If you elect to purchase your home warranty through your Bennion Deville Homes agent you might be able to negotiate the price of your preferred plan into the closing costs or even negotiate the cost difference into the final sale price.

Can a homeowner purchase a home warranty at any time? 

Absolutely! A homeowner may purchase a home warranty plan at any time. Note there is a 30-day waiting period after purchasing a plan, so if you don’t have a warranty plan in place yet, it is a good idea to get started soon. American Home Shield offers affordable pricing and plans, including comprehensive coverage for parts of up to 23 appliances and home systems, like cooling and heating, plumbing, and electrical. They will make sure your property runs properly and your budget stays on track. Visit to check out plans and pricing.

Bennion Deville Homes assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.

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