Who Pays for a Home Warranty — Buyer or Seller?

One of the most common questions in a home sale is simply: who foots the bill for the home warranty — the buyer or the seller? The honest answer is that it depends on your market, your negotiation, and local customs. A home warranty is never required; it's a negotiable perk. This guide breaks down who typically pays, why, and how to get it included in your deal.

Who pays at a glance

The short answer: it's negotiable

A home warranty is a term of the sale, not a legal requirement, so either party can pay — or neither. It gets decided the same way other concessions do: through the offer and counteroffer process. That means the "right" answer depends less on a rule and more on your local market conditions and how the negotiation plays out.

Why sellers often pay

In many transactions — particularly buyer's markets where homes take longer to sell — the seller pays for the buyer's first-year warranty. There are good reasons:

• It attracts buyers. "Home warranty included" is a reassuring perk, especially for first-time buyers nervous about repair costs.
• It reduces post-sale disputes. If something breaks shortly after closing, the buyer files a warranty claim instead of coming back to the seller. That can save the seller a headache (and potential liability).
• It's cheap relative to the sale. At $300–$600, a year of coverage is a small concession that can help close the deal.

Sellers also frequently get free listing coverage during the sale period, with the buyer's plan paid at closing — so the protection starts before any money changes hands.

💡 Tip: If you're a seller in a slow market, offering a home warranty upfront in the listing can be more effective than the same value as a price cut. A tangible "1-year warranty included" perk often resonates with buyers more than a few hundred dollars off the price.

Why (and when) buyers pay

In a strong seller's market, sellers have multiple offers and little need to throw in concessions — so buyers often pay for their own warranty if they want one. Buyers also pay when they want a specific provider or higher-tier plan than the seller would offer, since whoever pays generally chooses the plan. Paying for your own coverage gives you full control over the provider, plan level, and add-ons.

How to get a warranty into your deal

If you're the buyer:

1. Include it in your offer — request a seller-paid home warranty as a term.
2. Specify the plan if you have a preference (provider, coverage level).
3. Be ready to negotiate — in a competitive market, you may need to pay yourself.

If you're the seller:

1. Offer listing coverage when you list (often free during the period).
2. Advertise "warranty included" to attract buyers.
3. Decide your ceiling — most sellers cap their contribution at a standard one-year plan.

⚠️ Watch out: Whoever pays, the warranty still excludes pre-existing conditions and won't cover items that were already broken at closing. A seller-paid warranty is not a substitute for proper disclosures or a home inspection — buyers should still inspect, and sellers should still disclose known issues.

Who chooses the provider?

Generally, whoever pays chooses the provider, though the real-estate agent often arranges it through a preferred company. If you (as the buyer) care about getting a specific provider — say, one with high coverage caps or great claim-approval rates — specify it in the offer rather than leaving it to the seller's default choice.

Related articles

• Is a Seller's Home Warranty Worth It?
• Home Warranty at Closing: How It Works
• Home Warranty for First-Time Home Buyers: Do You Need One?
• Does a Home Warranty Transfer to a New Owner?
• Is a Home Warranty Worth It for Appliances?

📌 Disclaimer: This article is for general informational purposes only and reflects practices and pricing that change over time. Always confirm current plans, prices, service fees, and contract terms directly with the provider before purchasing. We may earn a commission from links on this page at no extra cost to you.