Home warranties are an asset when it comes to the purchase or sale of a home. In most states, a home warranty isn’t a requirement when you buy or sell a house, but it can go a long way in settling issues before they start. But who pays for a home warranty, and is a home warranty required at closing? Home warranties are typically purchased by either the seller or the buyer through their real estate agents. A home warranty is not required at closing, but there are a few reasons why having one may benefit all parties involved.
It’s not a requirement, but if you’re the seller, buying a home warranty for the buyer may be beneficial in several ways.
If you're the buyer, you may think asking the seller for a home warranty is the way to go. Throwing the home warranty cost to the seller means more money saved, right? This may be the optimal choice, but remember that whoever buys the warranty is in charge of the level of protection.
Unless the seller has a heart of gold, they may be more likely to purchase whichever home warranty plan is cheaper, which may leave gaps in your coverage. If you opt to buy the home warranty through your real estate agent, you may be able to negotiate the seller down a little in price and get your preferred home warranty included in closing costs.
Luckily, American Home Shield has competitive pricing and plans with both sellers and buyers in mind. Our plans offer comprehensive coverage for up to 23 essential appliances and home systems. We’re here to make sure your household runs properly, and your budget stays on track.