Paying For The Home Warranty

Best Buy Co, Inc.

Who pays for the home warranty?

Now, whether the seller pays for the home protection plan and home warranty coverage or whether the buyer pays for it, will depend on your local customs. It varies. In many locales, it’s normal for a seller to pay for the coverage because it’s a seller benefit. Why? Because then the buyer won’t be calling the seller after closing if something breaks. Many real estate agents will also give buyers a home warranty as a gift at closing.

How much does a home warranty cost?

They are fairly inexpensive, typically ranging from $300 to $500, depending on coverage. Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies can be prepaid for a year in advance or sometimes in tiers of three or more. When the policy expired sometimes you can expect to pay a little more for the next year but sometimes you get lucky and can get the same price for renewing.


Credit: Elizabeth Weintraub, CalBRE #00697006, Broker-Associate at Lyon Real Estate in Sacramento, California.