Are you selling your home and in the market for home warranty protection?
Perfect, you’re in the right spot. In this guide, you’ll learn:
- What is a home warranty plan for selling a home?
- How much does a home warranty cost when selling a home?
- Is a home warranty service contract worth it for sellers?
- How does home coverage for sellers work?
- What are the best home warranty companies and plans for sellers?
We’ve reviewed 68 different warranty companies, and below are our top picks for mobile home coverage specific to your state. Want to learn more about each? Scroll down!
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What's In This Guide?
Selling a home can be a stressful ordeal. Not only do you have to learn all the ins and outs of the real estate process, but you also have to ensure everything in your home is in good working condition to attract potential home buyers.
Home appliances and major systems can break at any moment, derailing your plans to sell your house. Even worse, if your home has an appliance malfunction or problem after closing, you might end up on the hook for a big repair bill.
That’s why real estate agents often recommend that their clients get a home warranty for their house to protect them and the buyer from unexpected repairs throughout the selling process. With so many great home warranty plans on the market today, it can be tricky to precisely know which one is right for your needs.
So, here’s everything you need to know about coverage options for the home you’re trying to sell, as well as our home warranty reviews of the best plans available to you.
What Are Home Warranties Meant For Sellers?
A home warranty is a way to protect yourself from unexpected repair costs in your house. Home warranty plans are particularly helpful for sellers because they will cover any repairs and replacement costs for your buyer during the selling process and after closing.
Top 5 Best Home Warranties For Home Seller Coverage
With the seller’s plan from a top home warranty company, you pay an annual premium in exchange for financial protection from any repair or maintenance issues up to a set dollar amount. There are multiple types of warranty policies available, including systems plans, appliance plans, and comprehensive plans, so you can get the coverage that you need to quickly sell your home.
What Does A Home Warranty For Sellers Cost?
In general, a seller’s home warranty costs between $300 and $600 for a year of coverage. That being said, there are a number of different factors that will affect the cost of your warranty policy, including the size of your home and the location of your property. So it’s best to request a free quote from any warranty companies you’re considering before you decide on a plan.
Additionally, the type of plan you want and the specific appliances and system that your plan covers will determine how much you pay for your warranty. When it comes to your home warranty coverage, you can usually choose between the following options:
Basic Plan Or Comprehensive Plan
A basic plan will offer protection for your home’s most essential systems and major appliances, like your ductwork, electrical system, and plumbing. These are often the most economical choice if you want coverage for just the bare necessities and not much else.
Alternatively, if you want total coverage for all of your major home systems and appliances, a comprehensive plan might be your best choice.
This option tends to cost a bit more, but these plans cover pretty much everything in your home, with some exceptions, such as a pool, or septic system. If you want even more coverage, you can usually get optional add-ons for these items to protect your investment even further and entice potential buyers.
Appliances Plans, Systems Plans, And Combo Plans
If you’re looking for more targeted coverage of certain parts of your house, an appliance or systems plan might be a good idea. With an appliance plan, you get coverage for items like a clothes washer, garage door opener, ceiling fan, or cooktop.
On the other hand, systems plans cover things like your HVAC, plumbing system, or electrical. Companies that offer these options will often also have a more comprehensive combo plan that includes all of the covered items in both the systems and appliances policies.
Build Your Own Plan
Finally, there are a few different home warranty providers that offer build your own plan options for sellers that really want to customize their warranty policy. With a build your own plan, you can choose between a variety of different covered items, including anything from an ice maker to a sump pump.
This option tends to be the most expensive, but it is a good bet for home sellers with very particular coverage needs.
Best Home Warranty For Home Sellers?
Choice Home Warranty is our #1 pick for home sellers because they have affordable, yet effective coverage to protect both you and your buyer during the real estate process.
Is A Home Warranty For Sellers Worth It?
If you’re selling your house, you’ve probably already spent quite a bit of money on updating your home, so you might not be convinced that you need a home warranty. But, a home warranty for sellers is worth it. Here’s why:
Coverage For Unforeseen Repair Costs
Selling a home is stressful enough, so you don’t need to add any unexpected repair costs on top of your list of things to worry about. Whether it’s your air conditioning system or your dishwasher, the right home warranty plan will protect you financially from huge home repair bills.
When you have a home warranty, any malfunctions that arise during the selling process will cost you just a small service fee and the price of any labor or parts above your per-item coverage limit. This protection can save you a whole lot of money out of pocket so you have more to spend moving costs and upgrades on your future new home.
Peace Of Mind During the Selling Process
The last thing you want is to be days away from closing on your house only to find out that your home’s heating system has decided it no longer wants to work. Not only will this put the entire sale in jeopardy, but it will also likely cost you a few thousand dollars.
However, with a home warranty, you just need to submit a claim, and the company will promptly send a qualified service provider to your house to assess, diagnose, and repair any issues. That way, you can still close on your house on time and avoid any hiccups along the way.
Extra Assurance For Home Buyers
Home buyers don’t like surprises when they’re about to spend some significant money on a new house. With a home warranty, buyers can feel confident that their new home will be well worth their investment.
The extra assurance of a home warranty can be enough to convince a prospective buyer to put down an offer on your house instead of a comparable alternative. That way, you can get your house off the market sooner, while also keeping your buyer happy throughout the process.
Protection From Issues During Home Inspections
A home inspection usually happens right after a seller accepts an offer from a buyer. However, issues that arise during an inspection can easily result in thousands of dollars in repair costs, which eats away at how much money you can put toward your next home.
Thankfully, many top home warranty companies offer protection against inspection issues in their plans for sellers. That way, you can focus more on applying for a mortgage or searching for a new house and less on the home you’re trying to sell.
Increased Selling Value
When you sell a home, you want to make as much as you possibly can. A home warranty can help boost your home’s selling value by making it more attractive to buyers.
Although a home warranty on its own doesn’t do anything to the appraised value of your house, this extra perk can help entice buyers and can result in a bidding war. That way, a home warranty can indirectly increase the final selling value of your home. What’s not to love?
Want 7 more tips on how you can increase the value of your home while it’s on the market? Check out this video!
Limits Post-Sale Disputes
While we all hope that our new home buyers are happy with their decision to invest in our house, disputes can arise after closing if an appliance or system breaks unexpectedly. However, with a home warranty, your buyer can simply reach out to the home warranty company to request a service call instead of contacting you to deal with an issue.
This can save everyone a whole lot of hassle if there are problems with the house after the sale. So, a warranty can help your buyer get quick and efficient repair service while also giving you the freedom to focus solely on your new house.
Covers What Homeowners Insurance Won’t
You almost certainly have a homeowners insurance policy to protect your house against any damages caused by fire, earthquake, flood, or another natural disaster. But, your insurance won’t do much if your appliance breaks from normal wear and tear. A home warranty, on the other hand, will.
This is also true for manufacturer’s warranties. When you buy a new appliance, it probably came with a nice warranty to protect against any defects in craftsmanship. But, when this manufacturer’s warranty expires, you’ll be liable for any subsequent repair costs.
With a home warranty, though, you’ll be covered long after a manufacturer’s warranty expires or when your insurance policy won’t pay up. So, a warranty is a good way to get more comprehensive coverage for your home should something serious arise during the selling process.
How Do Home Warranties For Sellers Work (Are They Unique)?
For the most part, home warranties that you can get for a home are the same whether you’ve owned the house for a while or if you’re selling yours for the first time. While some companies will offer special deals and terms to home sellers, most will provide the same coverage for your house regardless of where you are in the real estate process.
Here’s how a seller’s home warranty works:
Step 1: Select A Plan
The first step in the home warranty process is to select a plan. As we’ve mentioned you have quite a few different options to choose from, based on the type of coverage that you want. For complete coverage, a comprehensive or combo plan is often the best option.
Alternatively, a basic plan is usually the most economical choice for sellers on a budget. However, if you just want to protect your home’s appliances or systems, an appliance/systems plan might be a good decision. Finally, home sellers that want custom coverage on just certain items will do well with a build your own plan.
Once you decide on the coverage plan that you want, you simply need to sign your contract, pay your annual premium, and sit back as your warranty protects you from unexpected repair costs.
Step 2: Sell Your Home Quickly
With your home warranty in hand, you can then sell your house quickly. Prospective buyers like to see that they’ll be covered should their air conditioner or dishwasher break within a year of closing. So, you can spend less time with your house on the market and more time enjoying your new home.
Step 3: Buyer Submits A Claim
If something malfunctions after closing, your buyer just needs to submit a claim to the warranty company’s customer service center. Once the claim is processed, the buyer will pay a small service call fee (usually between $60-$125).
This service fee is sort of like your copay at the doctor’s office. It covers the cost of sending a repair person to your former home to assess, diagnose, and repair any damage.
Step 4: Buyer Gets Prompt Repair Service
After your buyer submits a claim and pays the service fee, they’ll get a professional repair specialist sent to their new home. The technician will then fix any of the issues in the house and the company will pay for the cost of the repair up to the dollar amount listed on the warranty contract.
In the end, your buyer is happy because they got a quick and affordable repair service on their new home without having to dispute the issue with you.
Top Home Warranties For Sellers Reviewed
When getting a seller’s home warranty, you have many options to choose from, so it can be difficult to know which plan is best for your needs precisely. So, here are our reviews of the best home warranties for sellers available today:
Choice Home Warranty
Choice Home Warranty is our number one pick for home sellers because they have affordable, yet effective coverage to protect both you and your buyer during the real estate process. The company offers two plan options – basic and total.
With the basic plan, you get protection for the following:
- Dishwashers and garbage disposals
- Heating and ductwork
- Ovens, ranges, cooktops, stoves, and built-in microwaves
- Hot water heaters and whirlpool bathtubs
- Plumbing, including stoppages
Choice Home Warranty’s Total Plan provides protection for all the above, plus additional coverage for clothes washers, dryers, and refrigerators. They also won’t deny you coverage just because you own an older home or have older appliances.
We particularly like the two plan options offered by Choice Home Warranty for sellers because they both cover appliances and systems at an affordable rate. That means you don’t have to spend a fortune on an annual warranty plan, but you can still feel confident that your buyer will get the protection they need.
Additionally, Choice Home Warranty has low service fees, which is attractive to buyers that don’t want to spend a lot out of pocket on a single repair call. The company also has a great 24/7 call center, so they’re available to assist your home buyer with repair issues at any time of day or night.
- Low service call fees mean fewer out of pocket expenses
- Affordable plan options with good all-around coverage
- Will cover older homes and systems
- No option to customize your own plan
American Home Shield
American Home Shield is a popular choice among home sellers because they offer four different plan options to meet your needs. The company has two basic plans – one for appliances and one for systems.
This is particularly useful if you’ve recently upgraded your home’s appliances and want to save a bit of money on your premium by protecting only your home’s systems. Alternatively, if you just did some major plumbing and electrical replacements, you might be interested in coverage just for your house’s appliances.
Alternatively, American Home Shield offers a combo plan, which contains all the covered items in both the appliance and systems plans. They also have a build your own plan that lets you choose up to ten different items to cover for maximum flexibility.
Something that’s quite unique about American Home Shield is that they also let you choose your own service fee. If you pay a bit more in your annual premium, you can get a very low service fee, which is a perk for a buyer. The company also offers plenty of optional coverage items like spas, pools and septic systems to fully protect your and the buyer after closing.
- Very flexible plan options with the ability to customize a policy to suit your needs
- Can choose a lower service fee to entice buyers
- Annual premiums generally cost a bit more than average
Select Home Warranty
Select Home Warranty is a solid choice for home sellers that want to give their buyers maximum control over the repair process. The company has three different plan options to choose from, so you can better customize your home’s coverage.
The bronze plan, or appliance plan, covers the following:
- Stove, oven, and built-in microwave
- Garbage disposal and dishwasher
- Clothes washer and dryer
Meanwhile, the gold systems plan protects your heating, air conditioning, ductwork, plumbing, and electrical. Finally, Select Home Warranty has a platinum plan that combines the coverage from both the gold and bronze policies and includes protection for plumbing stoppages and ceiling/exhaust fans.
We like these plan options because they allow home sellers to choose precisely the coverage they need for their home without having to pay any extra for protection you don’t need.
Additionally, we also really appreciate that Select Home Warranty allows customers to choose their own repair technician. This is a big bonus for new homeowners who might want more control over the repair process. Plus, the company offers emergency repair service so your home buyers can feel confident that they’ll get help whenever something malfunctions in their house.
- Ability to choose your own repair technician is a big selling point
- Emergency repair service for your home sellers
- Many plan options to suit your home
- Some annual premiums can be a bit pricey
Total Home Protection
Total Home Protection’s two plan options offer solid coverage for both your house’s systems and appliances during the real estate process. The company’s gold plan covers the following aspects of your house:
- Oven, stove, cooktop, range, and built-in microwave
- Garbage disposal and trash compactor
- Electrical system
- Whirlpool bathtub
- Water heater and interior sump pump
- Plumbing system and stoppages
- Ductwork and ceiling/exhaust fans
- Garage door opener
Additionally, they have a platinum plan that includes all the above-covered items, in addition to protection for clothes washers and dryers, heating and cooling, and refrigerators. They also have a great list of optional add-on items if you want to protect your home even further.
We like Total Home Protection’s plans because they cover both appliances and systems at a reasonable annual rate. They also have low service fees, which can help you market your home to prospective buyers.
Finally, Total Home Protection has 24/7 emergency repair service available to help your home buyers get their new house back in full working condition should something go wrong. Overall, their plans provide affordable, comprehensive coverage and good repair service for home sellers and buyers.
- Affordable premiums on plans that cover both systems and appliances
- Emergency repair service gives your home buyers peace of mind
- Low service fees can entice prospective buyers
- Limited coverage availability in certain states
First American Home Warranty
First American Home Warranty is a fan favorite among many home sellers because they offer two affordable plan options that have good overall coverage. The company’s basic plan covers major appliances, such as:
- Oven, cooktop, and built-in microwave
- Garbage disposal and trash compactor
- Clothes washer and dryer
Additionally, they offer a premier plan for people who want coverage on all the items in the basic plan, plus protection for major systems, including:
- Central vacuum system
They also have a handful of different add-on options for pools, spas, and air conditioning if you want even more coverage. First American Home Warranty’s plans are popular because they have low annual premiums and affordable service fees. This means that they save you money upfront but also reduce your buyer’s out of pocket costs down the line.
Plus, First American Home Warranty has a handful of protection upgrades available just for home sellers, which vary from state to state. That way, you can get even better coverage for you and your prospective buyers for a seamless home selling process.
- Affordable annual premiums with comprehensive coverage
- Different protection upgrades available for sellers to entice more buyers to your home
- Low service fees save buyers some money down the line
- Air conditioning coverage is only available as an add on
- Limitations for coverage in certain states
Final Thoughts On Home Warranties For Sellers
If you’re looking to sell your home quickly and efficiently, home warranty protection is a must-have. With a home warranty for sellers, you can attract more buyers to your home and have peace of mind that you’ll be covered if something malfunctions during or after closing.
While a warranty might be an out of pocket expense now, it’s well worth it when you sell your home and don’t have to worry about any potential disputes or issues in the future. That way, you can focus on moving and enjoying your new home.