Quick answer: Asking the seller to pay for a home warranty is a common, low-friction request, and it often costs the seller a few hundred dollars (an estimate that varies by plan and region). A seller-paid warranty is worth requesting when the home’s major systems and appliances are aging, but it only helps if you read the contract and understand what it excludes.
Key takeaways
- A home warranty for new home buyers is often a cheap negotiation ask, especially when the house has older systems.
- A warranty is not an inspection. It covers breakdowns from normal wear, not defects you could have found before closing.
- Check the contract for pre-existing condition language, coverage caps, service fees and who chooses the technician.
- Use year one to document everything, then decide whether to renew at your own expense.
Buying a home means a long list of costs, and the first big repair often arrives before you have unpacked. A home warranty is one way to soften that risk, and the purchase negotiation is the easiest time to get someone else to pay for it. This guide explains how seller-paid plans work, what to verify, and how to build a smart first-year strategy.
Want help comparing plans? You can request free, no-obligation home warranty quotes using the form on this page.
What a seller-paid home warranty actually is
A home warranty is a service contract, typically one year, that pays to repair or replace covered systems and appliances when they fail from normal wear and tear. In a real estate deal, the seller (or sometimes the seller’s agent) buys the plan and gives you the contract at closing. Some buyers also ask for it as a concession in the offer.
Here is how the arrangement usually works:
- You request it in your offer or during repair negotiations.
- The seller agrees to pay the premium, often at closing as part of the settlement.
- You get the contract, and coverage typically starts on the closing date or shortly after.
- You pay a service fee each time you file a claim, even though the premium is already covered.
For a full picture of what plans typically include, see our guide to what a home warranty covers and what it doesn’t.
Should you ask the seller to pay for one?
In most cases, yes, it is worth asking. The request is small compared with price reductions or major repair credits, so sellers often accept it, particularly in a slower market. You lose very little by asking, and you gain a cushion for the first year.
It makes the most sense when:
- The HVAC system, water heater or appliances are 10 years old or more.
- The inspection report flagged aging but still working equipment.
- You are stretching your budget and cannot absorb a surprise repair bill.
- The seller is reluctant to lower the price but willing to offer a concession.
It matters less when: the home is newly built with builder warranties, or major systems were recently replaced and carry manufacturer warranties.
Pro tip: Ask for the warranty as a concession rather than letting the seller pick the cheapest plan. Name a plan or at least a coverage level in your request so you are not stuck with minimal coverage.
Our breakdown of whether a home warranty is worth it walks through who benefits most and where the limits are.
A seller-paid warranty costs the seller little, but it only protects you if the contract fits your home.
What to check before accepting a seller-paid plan
A free plan can still be a bad plan. Do not assume a seller-chosen contract is suitable. Read it before closing, while you can still negotiate a different provider or tier.
Contract details that matter
- Pre-existing conditions: Many contracts exclude problems that existed before coverage began. Ask how the company defines this.
- Coverage limits: Look for per-item caps and annual caps. A low cap on HVAC or plumbing can leave you paying most of a large repair.
- Service fee: Typical fees fall roughly in the $75 to $150 range per visit (an estimate; confirm in the contract).
- Technician choice: Most plans require you to use their contractor network.
- Exclusions: Code violations, improper installation, lack of maintenance and rust or corrosion are common exclusions.
- Claim process: Find out how to file, how fast they respond, and how replacement versus repair is decided.
Coverage tier and add-ons
Basic plans may cover only some systems, while higher tiers add appliances, plus optional items like roof leaks, pools or well pumps. Confirm that the plan covers the items you actually care about. For typical pricing and what add-ons run, see how much a home warranty costs.
If you are comparing providers, our guide to the best home warranty companies and how to avoid bad ones covers the red flags worth knowing.
Home inspection vs home warranty
These two are often confused, but they do different jobs. An inspection tells you the condition of the house before you buy. A warranty helps pay for certain breakdowns after you own it.
- Inspection: A one-time evaluation, usually paid by you, that finds defects, safety issues and deferred maintenance. It informs your negotiation.
- Warranty: A one-year service contract that covers failures of listed items from normal wear. It does not replace the need to know the home’s condition.
A warranty will not usually pay for something an inspector could have found, such as an existing leak or a failing system the report flagged. That is why you should treat the two as complements, not substitutes.
Use them together:
- Get a full inspection and read every page of the report.
- Negotiate repairs or credits for real defects.
- Ask for a seller-paid warranty to cover the aging items that still work.
An inspection finds what is wrong today; a warranty is meant for what breaks tomorrow.
First-year coverage strategy for new owners
Year one is when surprises show up, so plan it deliberately. The goal is to extract value from the warranty without relying on it for things it will not cover.
- Read the contract in week one. Save a copy and note the claim phone or portal, coverage limits and exclusions.
- Photograph and document the home’s condition at move-in, including appliances and the water heater label with its age.
- Keep up basic maintenance. Change HVAC filters and flush the water heater as recommended, since neglect can lead to denied claims.
- File claims promptly. Waiting can complicate coverage, and do not hire your own contractor first unless the plan allows it.
- Track what you used. By month 10, compare claims paid against what a renewal would cost.
Do not mistake a warranty for insurance. A warranty covers wear-related breakdowns, while insurance covers sudden damage such as fire or storms. Our comparison of home warranty vs homeowners insurance explains why many owners want both, and new owners should also review home insurance for new homeowners before closing.
When a warranty is not the right move
Skip or negotiate differently when the home is brand new, when the plan’s exclusions would swallow the coverage you care about, or when you would prefer a cash credit to spend on a repair you already know is needed. In that case, a closing credit may help more than a plan you rarely use.
If you are weighing a specific provider, see our reviews of American Home Shield and Choice Home Warranty. A deeper side-by-side is in American Home Shield vs Choice Home Warranty. You can also compare options by browsing our home warranty guides.
Ready to see actual plan options? Request free home warranty quotes from vetted providers using the form on this page, then bring the best option to your agent as a specific ask.
Frequently asked questions
Can a buyer ask the seller to pay for a home warranty?
Yes. It is a common request in offers and repair negotiations. The seller can say no, but because the cost is modest, many agree, especially when it helps close the deal.
Does a seller-paid warranty cover problems found in the inspection?
Usually not. Most contracts exclude pre-existing conditions and known defects, so use inspection findings to negotiate repairs or credits separately.
Can I choose my own warranty company?
Often yes. Ask your agent to name the provider and plan in the offer, rather than leaving the choice to the seller. Reading the contract before closing helps you catch weak terms.
Should I renew the warranty after the first year?
It depends on the age of your systems, what you claimed, and the renewal price. Review your first-year experience and compare the cost against likely repair expenses before deciding. A qualified professional can help assess your home’s equipment.
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