As Negotiations Return to the Housing Market, Buyers Are Asking for Home Warranties
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Thanks to shifts in the housing market, homebuyers once again have some power over sellers — and with power, comes negotiation.
Home sellers are now more likely to agree to buyers' concessions, meaning it may be easier for you to snag a year-long home warranty on the seller's dime.
Home warranties provide coverage for appliances, and they’re often included in real estate deals as they give buyers peace of mind without being a major financial burden on the seller.
Until recently, the housing market was in a period when it was rare for sellers to make concessions — like buying home warranties — because properties were selling fast and it usually wasn’t necessary to add extras. But that's changing, as competition for homes as cooled.
Jay Rinehart, a real estate broker in South Carolina, says seller-paid home warranties have surged in popularity in his market. During the pandemic housing boom, it was almost unheard of for a seller to pay for a home warranty. But now he estimates that 10% to 25% of offers include a provision for a seller-paid home warranty.
Likewise, Alexia Bertsatos, an agent in Phoenix, says she and her clients are asking for a home warranty in almost every transaction, whereas a year ago they had put that request to the side because homes were getting multiple offers and often selling above the asking price.
“We couldn't ask for it because they wouldn't get it from the seller,” she says. “After the market slowdown a year ago, we are back to asking and negotiating with the seller to include the warranty, and most of them do now because we have more negotiating power.”
