Home Warranty: Does It Help Sell Your Home?

Home Warranty: Does It Help Sell Your Home?

April 24, 2024

Home Warranty: Does It Help Sell Your Home?

In the competitive landscape of Ontario’s real estate market, standing out can make the difference between a quick sale and a property that lingers on the market. One tool that sellers have begun to leverage is offering a home warranty to potential buyers. But does it really help in selling your home faster or for a better price? Here, we’ll explore the pros and cons of home warranties, and provide resources for buyers in Ontario.

Pros of Offering a Home Warranty

  1. Increased Appeal to Buyers: A home warranty can make your property more attractive to buyers, particularly those concerned about unexpected repair costs. It offers peace of mind, knowing that major systems and appliances are covered.
  2. Competitive Edge: In a market where buyers have options, homes with warranties may stand out as a safer investment, potentially attracting more interest and offers. In a market where buyers have options, homes with warranties may stand out as a safer investment, potentially attracting more interest and offers. This added layer of protection can instill confidence in potential buyers, reassuring them that any unexpected repairs or replacements will be covered, thus increasing the overall appeal and marketability of the property.
  3. Reduced After-Sale Concerns: Sellers can reduce the risk of post-sale disputes if an appliance or system fails soon after purchase, as the warranty would cover it, thereby ensuring that both buyers and sellers can proceed with confidence knowing that potential issues are safeguarded by warranty protections, thus fostering trust and transparency in the transaction process.

Cons of Offering a Home Warranty

  1. Cost: Home warranties aren’t free. Sellers need to weigh the cost of the warranty against the potential increase in sale price or speed of sale. While such warranties offer peace of mind, they are not without their expenses. Sellers must carefully assess the cost of purchasing a warranty against the potential benefits it may yield, such as a higher sale price or a faster transaction. This involves a thorough examination of the current market conditions, the condition of the property, and the preferences of prospective buyers.
  2. Coverage Limitations: Not all warranties are created equal. Some have significant exclusions or limitations, potentially leading to frustration for buyers if something isn’t covered. It’s crucial for sellers to recognize that not all warranty plans are created equal. While some warranties offer comprehensive coverage for a wide range of appliances and systems, others may have significant exclusions or limitations that could prove to be a source of frustration for buyers down the line.
  3. Dependency: Buyers might rely too heavily on the warranty, overlooking thorough inspections. While warranties provide valuable protection against unexpected repairs or replacements, there is a risk that buyers may become overly reliant on this coverage. This over-reliance could lead buyers to overlook the importance of conducting thorough property inspections before finalizing the sale.

Key Resources for Buyers in Ontario

  1. Tarion Warranty Corporation: Tarion serves as the regulator of Ontario’s new home building industry, providing protection to new home buyers and ensuring builders adhere to provincial legislation. Visit Tarion
  2. Canadian Home Builders’ Association (CHBA): Provides resources and information for home buyers in Canada, including a detailed guide to buying a home in Ontario. CHBA Resources
  3. Ontario Real Estate Association (OREA): Offers extensive resources for buyers navigating the real estate market, including tips on purchasing a home with confidence. OREA Home Buyers
  4. Real Estate Council of Ontario (RECO): RECO enforces the standards of practice for real estate professionals in Ontario. Their website offers valuable information for understanding your rights and responsibilities as a home buyer. RECO for Consumers


Whether a home warranty is right for your home sale in Ontario depends on several factors, including your market, the condition of your home, and your target buyer. While it can increase appeal and offer peace of mind, it’s essential to understand the costs and limitations involved. By providing this warranty and leveraging resources like Tarion, CHBA, OREA, and RECO, you can navigate the complexities of the real estate market more effectively, making your home a more appealing option for buyers.