Are you shopping for homes, and have run across one where the seller is offering a home warranty? You likely have questions about what this means for your new single-family home after you move in. 

What Does a Home Warranty Cover?

A home is going to cover many problems that could happen with your home soon after moving in. This typically includes defects due to workmanship that are discovered, which may be relevant if the home was a flip or recently had major work done on it. Material defects are covered, such as roofing material that fails and causes a leak. You'll also have coverage over your major appliances if they break, such as the HVAC system, washer, dryer, refrigerator, stove, and dishwasher.

Why Would a Seller Offer a Home Warranty?

A seller may offer a home warranty if they know there are issues with the house that they do not want to bother fixing on their own. For example, if they have a really old HVAC system that is on its last legs, it may be cheaper to offer a home warranty than to replace the entire system. A home warranty can also attract new home buyers that are not confident about performing home repairs themselves or a buyer that does not have the emergency fund to cover a big repair soon after moving in. 

How Do You Find Out About if a Home Offers a Home Warranty?

Many real estate agents list that the seller is offering a home warranty in the real estate listing, so you should have a good idea if the sellers are offering it from the start. However, you can also request that the seller purchases a home warranty as a concession during negotiations. This may be requested if you see things that worry you during the home inspection, and want the peace of mind that a home warranty provides?

Do You Have to Take the Home Warranty?

You do not have to take the home warranty that is being offered to you if you do not want it. You do have the option to request the cash value of the home warranty as an alternative, which can go directly toward your closing costs or offset the price of the home. A basic home warranty will cost a couple of thousand dollars, so it is definitely worth asking for the cash value if you do not want it. 

If you're ready to move into a single-family home, contact local real estate agents.