Best Options for Home Warranty Plans for Sellers

Selling a home involves more than just staging, listing, and negotiating. It also involves anticipating the needs and concerns of potential buyers. One of the best ways to make your home more appealing—and to give both yourself and your buyer peace of mind—is by offering a home warranty plan.

A home warranty plan is a service contract that covers the repair or replacement of major systems and appliances in a home for a set period, typically one year. For sellers, this can be a powerful tool. It helps reduce liability during the listing and negotiation period and can be a valuable incentive that sets your home apart in a competitive market.

Whether you're aiming for a smooth transaction or want to boost buyer confidence, understanding the best home warranty options available is essential.

What Does a Seller’s Home Warranty Cover?

Home warranty coverage varies by provider and plan, but most seller-specific policies include basic coverage for:

• HVAC systems (heating and cooling)

• Plumbing and electrical systems

• Kitchen appliances (oven, dishwasher, refrigerator)

• Washer and dryer

• Water heaters and garbage disposals

Some plans may also include coverage for roof leaks, pool and spa equipment, and septic systems, depending on the level of coverage and property type.

For sellers, coverage typically begins as soon as the listing becomes active and continues through the close of sale. This means you’re protected if something breaks down while the house is on the market or under contract.

Benefits of Home Warranty Plans for Sellers

1. Reduce Risk of Deal Breakers: If a system fails during a home inspection or right before closing, it can delay or even derail the transaction. A home warranty ensures that issues can be addressed quickly and cost-effectively.

2. Boost Buyer Confidence: Offering a home warranty plan signals to buyers that you’re a responsible seller who stands behind the condition of the home. This gesture alone can instill trust and reassure nervous buyers.

3. Competitive Advantage: Homes with included warranties often stand out in listings and marketing materials. Buyers may be more inclined to choose your home over others that lack added protections.

4. Post-Sale Protection: Most seller-paid home warranty plans extend coverage to the buyer for 12 months after closing, reducing the chance of post-sale disputes or claims.

Top Home Warranty Companies for Sellers

Here are some of the most trusted providers offering plans tailored to home sellers:

American Home Shield (AHS)

One of the oldest and most widely recognized providers in the industry, AHS offers flexible coverage options and broad protection.

• Seller Coverage: Free during the listing period in many states, with the option to upgrade to full buyer coverage at closing

• Pros: Extensive contractor network, customizable plans, 24/7 customer service

• Cons: Higher premiums and service fees compared to some competitors

Choice Home Warranty

Choice Home Warranty is known for affordability and solid basic coverage that appeals to both buyers and sellers.

• Seller Coverage: Limited seller coverage available during listing period

• Pros: Competitive pricing, quick claims response

• Cons: May have more exclusions than higher-tier plans

First American Home Warranty

This company offers plans with robust coverage and special pricing for sellers who want to offer buyer plans post-sale.

• Seller Coverage: Coverage for key systems during listing and escrow

• Pros: Reputation for customer satisfaction, simple plan structure

• Cons: Less flexibility in choosing your own contractor

2-10 Home Buyers Warranty

Specializing in real estate transactions, 2-10 HBW has one of the most well-known seller-side warranty programs.

• Seller Coverage: Complimentary coverage while the home is on the market

• Pros: Dedicated support for real estate professionals, seamless buyer transfer

• Cons: May require up-front enrollment through a real estate agent

Cinch Home Services

Cinch offers detailed, customizable home warranty options for those who want very specific coverage terms.

• Seller Coverage: Available with optional upgrades

• Pros: 180-day workmanship guarantee, fast service turnaround

• Cons: Slightly higher service fees

What to Consider When Choosing a Plan

• Coverage Scope: Review what each plan includes—and excludes. Make sure the systems and appliances most likely to age or fail in your home are covered. Pay attention to optional add-ons for things like pools, roof leaks, and septic tanks.

• Cost: While many seller warranty plans offer free listing coverage, the full premium (usually ranging from $400 to $700) may be due at closing. Also factor in service call fees, which range from $75 to $125 per visit.

• Company Reputation: Look at online reviews, Better Business Bureau ratings, and feedback from real estate professionals to evaluate customer satisfaction and service speed.

• Transferability: Ensure that the warranty plan easily transfers to the buyer upon closing, and understand how long the buyer is covered.

• Limitations and Caps: Every plan includes payout caps per item or service call. Clarify these limits so there are no surprises when a claim is filed.

How to Leverage a Home Warranty as a Selling Tool

To get the most out of your home warranty plan, include it in your marketing materials and listing descriptions. Let buyers know it’s already in place and paid for, which can be a powerful reassurance during negotiations.

You can also use it as a closing gift or negotiating tool to sweeten the deal if a buyer hesitates on price or requests repairs.

For higher-end homes or luxury listings, choosing a more comprehensive plan or premium coverage can add extra appeal and ensure that more complex systems are covered, especially if the home has custom appliances or high-efficiency systems.

Final Thoughts

While a home warranty isn’t required to sell your home, it’s often a wise investment. It protects your property during the listing period, adds buyer appeal, and helps ensure a smoother transaction.

The peace of mind it provides—both for you and your buyer—can be invaluable, especially in a market where buyers are cautious and competition is stiff. With the right home warranty plan in place, you increase your chances of closing smoothly and profitably.

Ready to Sell with Confidence?

If you're planning to sell your home and want expert guidance on leveraging home warranties and other value-boosting strategies, reach out to Darsh Parikh, Austin real estate agent and local expert.

Darsh can help you identify the best warranty plans, position your home for maximum market impact, and negotiate the best deal with potential buyers.

Visit austinrealestatedarsh.com to schedule a consultation and learn how to protect your investment and sell smarter today. With Darsh by your side, you're not just selling a home—you’re making your next move with confidence.