A home warranty is a one-year or 14 month service agreement that helps with the cost to repair or replace covered home system components and appliances when they inevitably break down due to normal wear and tear. It is a common request of home Buyers purchasing an older home with older components and appliances to want the Seller to provide some type of home warranty.
When a Buyer has requested you provide a home warranty, you can shop around for the best home warranty for the price. However, often times they may request a specified warranty for other components of the home, such as to cover a septic system or a well, in which case the cost will higher and it's best to know what your expense is going to be to cover a specified request before just agreeing to provide one.
You don't need to worry about ordering a home warranty and having it in hand for the new Buyer before the closing. You can order a home warranty a day or two before the close date. This allows you to know the home is ready to close. When you order the home warranty, you will be issued a confirmation and that can be provided to the Buyer at closing.