What is a home warranty?

Warranty - In commercial and consumer transactions, a warranty is an obligation or guarantee that an article or service sold is as factually stated or legally implied by the seller, and that often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty (source- wikipedia)

real estate warranty

Some states require that all builders use a third party warranty (Texas). Check the laws for new construction. In other markets you need to look at market practices. If all the competition is offering a home warranty then you can be at a competitive disadvantage if you fail to do so. The perceived value to the buyer can be much greater the physical cost so consider adjusting prices to cover any added cost.

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