Author Topic: Home Warranty if paid by Seller?  (Read 2473 times)


  • Magnum Stache
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Home Warranty if paid by Seller?
« on: November 11, 2015, 06:38:43 AM »
I'm in the middle of purchasing a house and have twice had home warranties (once with a purchased and once in a rental) with pretty lousy results.

The seller will pay for up to $550 for a home warranty, but I'm considering telling them don't worry about it.  We're handy enough thanks to MMM and most of these have a $65 - $75 service call fee and a long wait time.  What would you do in this case or are there any companies you've had decent experiences with?


  • Stubble
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Re: Home Warranty if paid by Seller?
« Reply #1 on: November 11, 2015, 07:41:49 AM »
When I recently sold my house I purchased the home warranty when it was listed.  I didn't have to pay until closing, but since I signed up immediately the house was covered for anything that might happen while it was on the market.

So it might be that they have already paid and it's a moot point.  Although, since you say they'll pay up to $550, maybe that isn't the case.

I have had two home warranties on two different houses plus the one I purchased to the sale of my own home.  I have never had to use any of them though, so I don't have much feedback on wait times.

You could also wait until the inspection results come back and ask them to drop the home warranty and put that money towards some repairs via seller's assist.  Alternatively you could ask them to put the $550 towards seller's assist right now, if that's still an option with the bank.


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Re: Home Warranty if paid by Seller?
« Reply #2 on: November 11, 2015, 08:12:16 AM »
I don't have a home warranty, and would personally try to haggle the home price down by $500 instead.. we do have some friends who bought a house that came with a warranty, they had the water heater burst a week after moving in, flooding the basement.. the warranty paid not only for a new heater, but for a plumber to bring the system up to code (expansion tank and the like) - while i could be DIY'ed cheaper, they now have a nice new water heater professionally installed for only the small deductable, and they still have the warranty. If your options are having it or not, with no other differences elsewhere, I would take the warranty.


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Re: Home Warranty if paid by Seller?
« Reply #3 on: November 11, 2015, 08:52:41 AM »
If seller wants to throw it in, ok.  But I would rather have that money somewhere else. 

I've used a home warranty twice, both times sucked.  First time was a plumbing leak inside the wall for the shower.  Instead of cutting drywall in the hallway, the plumber knocked out tile in the shower.  Said I would need to find a drywall and tile guy on my own, warranty only covered fixing the leak.  Ever try matching 30 year old tile?  The second time was for air compressor.  They replaced it under warranty, but didn't cover the inside unit.  With inside and outside units being mismatched, it ran like crap and power bills spiked. 

Both times I could have saved by either DIY or finding my own contractor.  Warranty companies are not there to protect your property, they are there to feed your fears for profit. 


  • Handlebar Stache
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Re: Home Warranty if paid by Seller?
« Reply #4 on: November 11, 2015, 09:04:29 AM »
Try to take it in cash or a credit at closing.


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Re: Home Warranty if paid by Seller?
« Reply #5 on: November 11, 2015, 09:17:26 AM »
As a first time home buyer (at 47), I'm so glad that there was a house (appliance and other stuff covered) warranty.
I didn't have to agonize over who to call, just called the warranty company, paid the $60 and learned a lot about fixing stuff.
Issues fixed microwave, house heat.

    I found that American Home Shield was responsive and got good repair people to the house.  I've used the heating/cooling technician since the warranty.

I'll have a home warranty if I ever sell, or if I buy a house in a place where I haven't lived before.

Disclosure:  Not an American Home Shield affiliate nor currently a customer (learned to deal with stuff myself).
« Last Edit: November 11, 2015, 09:20:15 AM by markbike528CBX »


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Re: Home Warranty if paid by Seller?
« Reply #6 on: November 15, 2015, 09:53:01 AM »
I like having it for the first year, for if anything was missed in the home inspection, but I don't ever renew them.
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