Do Buyers Really Value Home Warranties? (Survey Data)
In a real estate market that’s becoming more competitive and data-driven, sellers and agents are constantly looking for ways to sweeten the deal. One option that often comes up is the home warranty but do buyers actually care about it? Does it influence their decision to make an offer or feel confident about the purchase?
In 2025, new survey data reveals that home warranties do, in fact, carry weight with today’s buyers but how much they matter depends on the buyer’s experience, financial comfort, and the condition of the home.
Let’s dive into the latest research and buyer sentiment around home warranties.
What the Latest Surveys Say About Home Warranties
Several 2024–2025 industry surveys shed light on the real value of home warranties in the eyes of buyers. One of the most cited is the National Association of Realtors (NAR) 2024 Home Buyer and Seller Generational Trends Report, which found:
- 58% of buyers under age 40 said a transferable home warranty increased their confidence in a home purchase.
- 34% of first-time buyers said they were more likely to make an offer on a home with a warranty.
- 67% of all buyers considered it a “nice-to-have” feature especially for homes over 15 years old.
Another study by Porch.com in late 2024 surveyed over 1,000 recent homebuyers:
- 45% filed at least one home warranty claim within the first year of owning their home.
- 71% of those claimants said the warranty paid for itself, especially for HVAC, appliances, and plumbing.
Why Buyers Like Home Warranties
Home warranties offer reassurance during a period of financial uncertainty and transition. For many buyers particularly first-time homeowners it’s less about the fine print and more about emotional security.
Here’s what buyers appreciate:
- Protection from surprise costs: Major systems failures right after move-in can be financially devastating. A home warranty provides a safety net.
- Ease of use: One number to call for covered repairs, often with a small flat service fee.
- Seller goodwill: When a seller offers a warranty, it signals transparency and care.
“It felt like the seller had our back. We didn’t expect the AC to fail in July, but it was covered. That $75 service call saved us a few grand.”
Recent buyer in Arizona, Porch.com survey
Which Buyers Value Warranties the Most?
Not all buyers feel the same way about warranties. Based on buyer profiles, here’s who’s most likely to value them:
| Buyer Type | Trust in Home Warranty | Likely to Use in Negotiation |
|---|---|---|
| First-Time Buyers | High | Very likely |
| Millennial/Gen Z | Moderate–High | Likely |
| Investors | Low | Unlikely |
| Luxury Home Buyers | Low | Rare |
| Older Retirees | Moderate | Possible |
In essence, budget-conscious and younger buyers see the most value, while cash buyers or experienced investors may prefer to self-insure and skip the fine print.
Buyer Sentiment: Pros and Concerns
What Buyers Like:
- Covers the “unknowns” in older homes
- Reduces post-sale stress
- Adds predictability to early ownership costs
Common Concerns:
- Limited coverage or confusing terms
- Denials for “pre-existing” conditions
- Delays in service technician dispatch
- Lack of choice in repair providers
Many of these concerns stem from poor past experiences or a misunderstanding of what’s covered which is why clarity is key when offering a warranty as part of the sale.
How Agents Use Warranties as a Selling Tool
Real estate agents increasingly recommend home warranties either during the listing period or as a negotiation incentive. Some even offer to cover the first year of warranty as a gesture of goodwill.
According to the Home Warranty Association of America, over 30% of listings in 2024 included some form of home warranty coverage — up from 21% in 2021.
“We always suggest including a basic plan in the listing. It sets the tone that the seller is proactive and reduces anxiety for first-time buyers.”
— Licensed Realtor, Dallas TX
Market Trends in 2025
As homeownership costs climb, the demand for cost protection tools like home warranties is rising. Here are key trends to watch:
- Customizable warranties: More buyers are interested in modular plans that cover only what they need — like appliances only, or HVAC systems.
- Bundled warranty + home service plans: Companies are beginning to offer maintenance packages along with repair coverage.
- Digital-first experience: Buyers expect fast claim filing, mobile tracking, and digital documentation — especially younger homeowners.
The value of a home warranty isn’t just in its contract it’s in the buyer experience it creates.
Final Thought: It’s About Peace of Mind
For many buyers in 2025, a home warranty is less about guaranteed payouts and more about lowering the emotional and financial stress of a major life decision. When positioned correctly, it can be the final nudge a hesitant buyer needs.
And for sellers, offering one can be a smart, low-cost way to stand out.
Next up: Should You Offer a Home Warranty as a Seller Incentive?
Explore when offering a home warranty makes sense, how much it costs, and whether it can help you close faster or get a better price.
