Should you or shouldn’t you?
A typical home warranty in Tennessee is about 450.00. They are very specific and limited in what they cover. Sometimes, they do help the buyer feel more confident about buying a house. Since they’re limited, I think it is about a 50% chance that it’ll actually help. If a specific part on your HVAC breaks, it may or may not be covered… and so on.
In my experience, regardless of what you offer on the front end, Buyers always want more! If you offer 3% closing costs and a home warranty on the MLS, the buyer will want those 2 things AND THEN SOME. That’s just the nature of the beast, that is the Buyer. I mean, how were you when you were the Buyer? I know how I was.
I tell my sellers to wait until home inspection negotiations before offering a home warranty. The buyer may have a laundry list of repairs, and it may not be financially feasible to offer a home warranty. OR, you may decide to offer a home warranty in lieu of repairs. If you offer it on the MLS, then… you can’t really take it back. If you offer it during the inspection phase, it is now a great negotiating item.
~chrissy kirkwood | Nashville real estate expert