Should I Offer a Home Warranty When Selling in Las Vegas?

by Ryan Rose

Home warranties are a common seller concession. They provide buyers peace of mind and can help close deals. But is the cost worth it?

What Is a Home Warranty?

A home warranty is a service contract covering repair or replacement of major systems and appliances for typically one year. It's different from homeowner's insurance, which covers damage from events like fire or storms.

Home warranties typically cover:

HVAC systems
Electrical systems
Plumbing systems
Water heaters
Kitchen appliances
Washer/dryer (often optional)
Garage door openers
Ceiling fans

Not typically covered:

Pre-existing conditions
Roof and structure
Outdoor items (pool, sprinklers)
Cosmetic issues
Code violations

What It Costs

Home warranty costs for sellers:

Coverage Level	Typical Cost
Basic coverage	$400-500
Enhanced coverage	$500-700
Premium coverage (pool, spa)	$700-900

This is a one-time cost paid at closing, deducted from your proceeds.

Benefits for Sellers

Attracts buyers. In a competitive market, a warranty makes your listing more appealing. It's a differentiator.

Reduces post-sale calls. When something breaks after closing, the buyer calls the warranty company, not you.

Eases inspection concerns. Buyers worried about older systems may accept them knowing warranty coverage exists.

Helps close deals. A warranty can bridge the gap when buyers are nervous about potential repairs.

Low cost, high perceived value. A $500 warranty can feel like significant protection to buyers.

When Warranties Make Sense

Older home. Systems and appliances more likely to need attention.

HVAC or appliances nearing end of life. Warranty provides buyer comfort without replacing.

Competitive market. Need to stand out against similar listings.

First-time buyers. Often worried about unexpected repairs.

Inspection revealed concerns. Warranty addresses buyer nervousness without major repairs.

When to Skip

New construction or recent build. Everything should still be under manufacturer warranty.

All systems recently replaced. New HVAC, appliances, etc. don't need additional coverage.

As-is sale to investors. Investors don't expect or want warranties.

Cash buyers who waive everything. They're not looking for protection.

Listing Period Coverage

Some warranty companies offer listing period coverage for sellers. This covers repairs while the home is on the market, protecting you from surprise breakdowns during showings.

Cost is typically included in the buyer's warranty premium or a small additional fee.

What Warranties Don't Do

Warranties have limitations buyers should understand:

Service fees: Buyers pay $75-125 per service call
Coverage limits: Max payout per item or year
Exclusions: Pre-existing conditions, improper maintenance
Wait periods: Some coverage doesn't start immediately
Contractor choice: Must use warranty company's contractors

Set realistic expectations. Warranties help, but they're not blank checks.

Popular Warranty Companies

Companies operating in Las Vegas include:

American Home Shield
First American Home Warranty
Old Republic Home Protection
Choice Home Warranty
Home Warranty of America

Your agent can recommend companies with good claim experiences in Nevada.

Negotiating with Warranties

Use warranties strategically in negotiations:

Counter inspection requests: Instead of expensive repairs, offer enhanced warranty coverage.

Sweeten your listing: Advertise "seller-paid home warranty included."

Address buyer concerns: Nervous about the 12-year-old HVAC? Warranty provides peace of mind.

The Bottom Line

For $400-700, a home warranty provides buyers peace of mind and protects you from post-sale headaches. It's a small investment that can help your home stand out and close more smoothly. For older homes or systems nearing end of life, it's often worth including.

Want to discuss whether a home warranty makes sense for your sale? Let's talk strategy.