A home warranty can be a good idea for homes that are no longer under a construction warranty. They protect sellers while the property is listed and then transfer to the buyers once the property is conveyed.
Home warranties usually cost around $500 and they cover most major items should there be an issue during the covered period. Be sure and check out what is covered and what is not. Not all warranty companies are created equal. For example, HVAC systems are an add on item in some cases.
If a covered item fails while the warranty is in effect the covered party will pay a nominal fee to have the item repaired or replaced.
In my experience, the deductible is usually around $100 which means it would not be cost effective for
Home warranties also tend to help buyers feel a little more comfortable about extending an offer. Knowing they won’t have to budget for a major expense if something should fail puts them at ease.