In my experience (in several US states) it has never been "offered to sell me." It has been "the seller is including a home warranty [whether you want it or not]." One time I tried turning it down, and was basically told "well, we'd have to go back to the drawing board on the offer if you do that. Just take it. Everyone takes it." And similarly when selling a house "I don't want to include a home warranty" was met with "all other sellers include it, so if you don't, you're going to look bad." For the cost of these warranties I can't imagine that the agents are getting that much of a kickback, especially compared to the commission they make on the sale, but something is clearly going on.
Well just to put in some more anecdotes, I sold a home in December and did not offer a home warranty. My agent did not care and the home sold quickly without one.
And several friends and family have purchased real estate in the last few months; again no home warranty offered or expected in those transactions.
I think the market has a lot to do with it. I've bought properties in buyer's markets (recession '08 and '14) and it was barely even mentioned that there was a home warranty included. I got the sense from my agents that it was standard.
I've been shopping since September last year and watched the market shift as low interest rates stopped recently. There was a seasonal dip in December 2021, but it was still about 20% higher than even highs of previous years as people scrambled to get good loans before they ended. It was definitely a seller's market. My agent said many winning deals were waiving financing contingencies and even inspection contingencies to sweeten the offer. Home warranties would have been one of the first things dropped.
Well my house didn't come with a home warranty either nor did anyone involved in the transaction recommend one or even mention it either way. I was under the impression they were a very niche product.
