Debbie, I strongly recommend home warranty to any transaction, if the buyer refuse the home warranty then I suggest put it in writing.

I just document it and move forward.  Home warranty companies are very profitable due to paying out less than they collect.  I use them for listing tools more than for my buyers.  However, I sold a bank REO that was vacant for a number of months so I did talk the buyer into getting a home warranty on it since many appliances in a home don't due well sitting for months without use.

For condos it is a waste. For older homes seller or I pay for it. No one wants surprise.

I have mixed feelings about home warranties. I offer and suggest them, but I also see where they are not worth the money shelled out. I try to get sellers to offer them to my buyers, and they do offer some piece of mind for buyers.

I personally don't believe home warranties are necessary, however, as an agent I always encourage buyers to protect themselves with one. If they decide against, I make sure it's in writing. Same goes for an inspection.

Require that they sign something to that effect.

Set aside some money each month so that you will be prepared for when repairs are needed.

You can lead a horse....we tell stories of where the investment bought...a new furnace in the first week of owning a home...if they refuse, they may be sorry.

Debbie,

I have seen so many instances when the home warranty was the best thing that happened to a friend.  A dishwasher was replaced and a washing machine both top of the line.  The home warranty was a mere pittance by comparison.  Yes, I would point out the benefits.  If they still refuse, what can you do?  A

I always recommend it and encourage them to have it. However if they buying the property to terret down and rebuild it's a moot point otherwise I just buy it for them and it becomes a closing gift.

We ask them to sign a form declining the home warranty.

We can't force them.  Nice to have documentation though if they turn it down.

I would note the decision and move on. Many who do have home warranty policies have unrealistic expectations about the coverage and then get upset when something is not covered. They blame it on the agent.

I explain why they might be a good idea, especially if the seller is paying for it--but in the end it is their choice. I just have them sign off on the declination. But as I write all my contracts asking for the seller to pay for a one year warranty, as a seller concession, I've not yet had a buyer say no.

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I'm challenged to understand the question.

If I invited my friend to Casa Tina's to celebrate their birthday (that means I'm paying) and they stated "I really don't like cooked spinach" I would not consider ordering cooked spinach for them or me.  Even though it just may be, by leaps and bounds, the most beneficial thing for them and me that appears on the menu.

And I would not make a big deal of it. If the spinach did arrive at the table, just like a home warranty, neither I or my guest need to eat or use the unneeded.

It becomes more complicated if there is more to the story than you shared, such as this is a 20 year old house without a single update OR the buyer intends to gut the house and bring to life a new creation or the buyer wants to pocket the $400 from the warranty.

I have had a number of buyers who have definitely gotten their money's worth from a home warranty.  I will discuss the benefits and offer anecdotal evidence, but some people are fine with making repairs on their own or would prefer their own vendors do the work.  I just have them acknowledge it and move on. 

Most of the time I write in the agreement of sale asking the sellers to pay for it. 

It happens often. Sometimes, since the seller already agreed to pay for it, we apply those money towards closing costs.

Seriously, I recommend them highly and show them the benefits. It's very unlikely that they will refuse it.