How to Negotiate a Home Warranty Into Your Home Purchase: Expert Tips

Buying an older place is exciting until the water heater coughs at 2 a.m. Here’s the thing: a good home warranty won’t stop things from breaking, but it can stop the panic. If you’re wondering who pays for home warranty buyer or seller, the short version is it’s negotiable—and I’ll show you how people actually handle it without drama.

Why older homes make us a little twitchy

Older homes have character—and aging systems. Furnaces hit that 15–20 year mark. Electrical panels weren’t designed for today’s gadget load. Appliances still work… until they don’t. A warranty gives you one number to call and a fixed service fee when something fails from normal wear. It’s not flashy. It’s just less chaos when life throws a curveball.

What a home warranty actually covers (and what it doesn’t)

Think systems and appliances: HVAC, water heater, plumbing and electrical lines, dishwasher, fridge, washer/dryer—plus add‑ons like a second fridge or pool equipment. Homeowners insurance handles disasters; a warranty handles breakdowns from normal use. Limits matter: caps per item, service fees per call, and exclusions like pre‑existing issues, improper installs, or code upgrades. Read the sample contract. Boring? Sure. But it’s the difference between smooth and “why won’t they cover this?”

So… who pays—buyer or seller?

Believe it or not, there’s no rulebook. In many markets, sellers offer a one‑year plan as a sweetener, paid at closing. In hot markets, buyers often pick up the tab to keep their offer clean. Sometimes agents write it into the offer or ask for it during inspection negotiations. If you’re comparing costs and thinking who pays for home warranty buyer or seller, remember the price is usually a few hundred dollars—tiny compared to a $1,200 compressor failure on Week Two.

When it’s smart to ask the seller to cover it

If the inspection flags aging systems, you need a concession but don’t want to kill the deal. A seller‑paid warranty is the easy button: low friction, quick yes. It’s especially fair on older homes where nobody can guarantee how long that water heater will hang on. It also neatly answers the who pays for home warranty buyer or seller question when you’re already negotiating other repairs—let the seller cover Year One, and you take it from there.

When you, the buyer, should just grab it yourself

In a multiple‑offer scrum, adding asks can sink you. Pay for the plan yourself, start coverage on Day One, and pick the exact company and coverage you want. I like this route when I want lower service fees, higher caps for HVAC, or specific add‑ons (think well pumps, septic, or a second fridge in the garage). Control matters when the house is older and surprises tend to cluster in the first months.

What a warranty won’t fix (so you’re not blindsided)

No warranty covers everything. Expect limits on pre‑existing conditions, lack of maintenance, cosmetic issues, or code/permit upgrades. Some plans exclude certain parts (like ductwork or refrigerant). And yes, you’ll pay a service fee per visit. The trick is matching your home’s risk to the plan’s caps and exclusions so you’re not betting on coverage that isn’t there.

Quick math: when it pays for itself

Typical plans run $450–$800 a year. Service fees are often $75–$125 per call. One mid‑range repair—say a water heater igniter, dishwasher control board, or an AC capacitor—can wipe out most of that cost. A single big save (compressor, heat exchanger, or fridge sealed system) can put you way ahead. If your systems are at “teenage” age, the odds tilt in your favor.

How to choose without getting burned

I keep it simple: pick higher caps on HVAC and water heaters, a reasonable service fee you won’t dread paying, and fast claim response. Make sure they actually service your ZIP and have techs in network. Then open the sample contract and skim the exclusions—five minutes, tops. If you want a shortcut, I’ve compared the top plans and spelled out the trade‑offs in plain English; check my current picks at Consumer's Best. If you still need leverage for negotiations, just ask yourself who pays for home warranty buyer or seller in this market—and use that answer in your offer.