The obvious purpose of a warranty is to protect your valued property from a higher financial loss if something were to go wrong or stop working. This can be a potential deal breaker in any situation, but especially within the real estate market. Imaging you have a potential buyer, and during the closing process the water heater breaks. Most likely, the buyer will expect the water heater to be fixed by the seller or reduce the closing cost to cover the difference, otherwise they may back out of the deal. You as a seller, the last thing you want to do is put more money into a house that you are selling when it does not increase the value.

Another advantage of offering a home warranty to a buyer, is it protects them for a given period of time after the sale of your home should something major go wrong. This can build confidence in you as a seller, assuring the buyer that you are looking out for their better interests and making sure they are satisfied with the purchase of your home. If a buyer is torn between two potential houses, would they more likely go with the house that is covered for the next for major repairs, or the house that comes with no warranty, as-is, and any day something could go wrong?

Before you agree to a warranty for your home, always be sure to read the fine print. Just like any warranty, if whatever issue you have is not covered under their warranty, they will not take care of it. Home warranties have restrictions and it’s important to understand what those are so you know what items in your home are covered. For more information on home warranties please visit http://en.wikipedia.org/wiki/Home_warranty