Home Warranties - Does it give peace of mind?

Real Estate Agent





A home warranty can give a purchaser peace of mind.  If anything catastrophicwho should buy a home warranty happens in the house, you are only financially liable for the deductible.  So if the furnace goes out one evening and you just can't get it going (as long as it is maintained and not abused) you would call the warranty company and they would send out a technician to fix/repair/replace the furnace depending on the problem.  So yes, if the furnace did indeed blow up (heat exchanger) you would get a new furnace of comparable quality.  You cannot choose the technician or company involved but for years my clients have used these warranties with no problems.  You just have to give up a little control with that extra peace of mind.


What if the house is a disaster?  Foreclosure?  You can only guess from the home inspection how the systems and appliances were previously treated.  In some homes it is completely obvious that they haven't been maintained at all! The particular system or appliance must be in working order as of the closing for the warranty to cover that particular item.  So if you purchase a home where the dishwasher is not working or cannot be fully tested, the dishwasher would be excluded.





home warrantyIt can offer the buyer peace of mind and bolster their faith that all the appliances and systems in the house can be repaired if anything does go wrong.  The nominal deductible seems very reasonable when a service charge alone is usually double the deductible.  Normally I wouldn't suggest this if you have a new furnace or this is a newer home. The perfect selling solution for a warranty is where the furnace is around 10 years old and all the appliances have been well maintained and cared for but vary in ages.


As a seller, your home would be covered as of the listing day thru the closing day.  Then the warranty would transfer to the buyer at closing and then continue for that full year. The warranty is paid for at the closing.


I currently work with companies that are RE/MAX Benefits Partners which lets me offer you a reduced price on warranty policies for listing or buying a home through me. 


Possible Savings:    AC or Heating System   $2250 to $6500

                                Washer or Dryer   $500 to $1000

                                Stove   $700 to $1600

                                Refrigerator   $600 to $2200

                                Water Heater   $800 to $1200


Home Component Life Expectancy Article


A home warranty is a service contract, normally for one year, which helps protect home owners/home buyers against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.

Check each home warranty policy from each company to see which of the following items are covered and which company you prefer. Also find out if the policy covers the full replacement cost of an item.


  • Plumbing
  • Electrical systems
  • Furnace
  • Water heater
  • Heating ducts
  • Water pump
  • Dishwasher
  • Garbage disposal
  • Stove/cooktop/ovens
  • Microwave
  • Refrigerator
  • Washer/dryer
  • Swimming pool (optional)


Deductibles are usually $75 - $100 - $150 depending on what plan you select for 'EACH' occurence.


Who typically buys the home warranty? 

It can be either the buyer or the seller in a transaction & is paid at closing.




Posted by


  Lyn Sims    Schaumburg IL Area    Northwest Chicago Suburbs  ●  (847)962-7104

Comments (6)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hello Lyn... I'm all about home warranties... mine has replaced two A/C's for me, a fridge, a GE Advantium Oven... and then there are a who slew of miscellaneous repairs that would have cost a bomb in labor. Warranties have provided great coverage for many of my sellers and buyers. 

Feb 22, 2021 09:37 AM
Lyn Sims

glad to hear it worked out for you Nina. I know that lately buyers are extending these for many years after they close.

Feb 22, 2021 10:12 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Lyn, I always to push home warranty for buyers to get whether pay by the seller and if not me.

Feb 22, 2021 09:40 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

the only thing I don't like is that some companies control who does the work.  That's a hard no for me after I went with who my insurance company recommended for a repair once and it was less than quality material and workmanship.

Feb 22, 2021 10:34 AM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Lyn- our friends had one on a home they purchased and had to use it several times. It really paid off for them

Feb 22, 2021 11:19 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


We had a home warranty, new washer, and new dishwasher.  We were happy with that.  Have a wonderful week.  A

Feb 22, 2021 11:24 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lyn, my buyers from this past weekend are all about home warranties too!  

Feb 26, 2021 06:32 AM