Real Estate Home Warranty. About 20% of my transactions in 2015 were in need of making a claim on the provided home warranty. Having one need not be costly. Not having one can be costly.
A home warranty can cover the most critical home systems, may cover appliances, aand comprehensive coverage can cover additional home systems.
Those of my clients have had recent claims on HVAC, a leaky toilet causing damage, a thermostat, a malfunctioning fireplace, and a garbage disposal.
To me the costs of the policy are reasonable. They can range from $345.00 to $860,00. Condominiums can be less costly depending on the insurance company. Larger homes cost more and as posted here some companies have different levels of what they do cover. Payment for the policy with companies I use is not made until closing. If the listing expires without a sale their is no premium due. If the buyers agent require a different insurance company the seller usually is not charged. This is a question to be discussed at the time of listing.
Who pays is the question. When I am a dual agent, working for both buyer and seller in a win win situation, I pay for it. The standard MLS forms make it a clear option as to the inclusion of a warranty of not and whether the buyer or seller are paying. This should be decided at the time the home is listed for sale and my suggestion is that the seller have their agent order it at once. It should cover any issues during the listing time and will usually cover an issue found by an inspector. The bottom line, who pays is negotiable.