7 Ways Home Warranty Can Help Real Estate Transactions

Buying a home is an exciting yet intimidating endeavor, especially for first-time buyers. With so much to consider, it’s essential to have a home warranty in place to protect your investment. A home warranty can help real estate transactions by providing peace of mind, protecting against unexpected repairs, and providing financial relief. 

Here are seven ways a home warranty can help:

1. Peace of Mind

A home warranty gives you peace of mind knowing that your home is protected in the event of an unexpected breakdown. Home warranties cover repairing or replacing central HVAC, plumbing, and electrical systems. This means you won’t have to bother about paying off out of pocket for expensive repairs or replacements.

2. Negotiation Tool

Home warranties can be valuable for buyers and sellers. Buyers can often negotiate for a home warranty in the purchase agreement. At the same time, sellers can use a home warranty in real estate to make their homes more attractive to potential buyers. Thus, buyers may be more willing to pay a higher price for a home if they know they will have a home warranty to provide protection. 

Sellers can also benefit from offering a home warranty, as it may help them sell the home quicker and at a higher price.

3. Protects the Buyer

Home warranties protect the buyer from unexpected repairs and potential breakdowns of major household appliances. Instead of paying for costly maintenance out-of-pocket, you can rest assured knowing a home warranty will cover the cost of any significant repairs or replacements.

Many warranties cover appliances such as refrigerators, washers, dryers, and dishwashers, which can be expensive to repair or replace.

4. Protects the Seller

Home warranties also protect the seller. If a buyer discovers a problem after closing, the seller can be responsible for the cost of repairs. Home warranties protect the seller from these unexpected costs and provide peace of mind that any problems discovered after closing will be covered.

5. Reduce Stress

Buying a new home can be a stressful experience, and having a home warranty in place can reduce stress and provide added peace of mind. Home warranties can ease the burden of unexpected repair costs, so you can focus on enjoying your new home.

6. Increase Home Value

A home warranty can increase the value of your home by providing a greater sense of security and protection. Buyers will be more likely to purchase a home with a home warranty, knowing they won’t have to worry about unexpected repair costs.

7. Cost Savings

Home warranty plans can provide cost savings for both buyers and sellers. Depending on the program, buyers may save money on repair costs, and sellers may be able to avoid costly repairs.


Home warranties are an excellent tool for home buyers and sellers regarding real estate transactions. They protect both parties and can help increase a home’s value. If you are considering a real estate transaction, look into home warranties, as they can provide peace of mind and help with negotiations.

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