Realty That Works | How Home Warranty Helps Both Buyers And Sellers
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How Home Warranty Helps Both Buyers And Sellers

  |   Home Buying, Home Selling   |   No comment

From cars to electronics to our mobile phones so much of what we own has the option for a warranty program. That includes a home as well. So what is a home warranty? Unlike home insurance, which protects against property damage including theft and loss to personal items, home warranty covers major systems and appliances when they breakdown. When it comes to the sale of a house, buyers will usually want a home warranty when closing escrow on a house. Over time, appliances will experience wear and tear and it’s condition will deteriorate and sometimes a buyer that just purchased a new home can benefit with the peace of mind of having protection that’s affordable, dependable, and meaningful. When a covered item is not working, it will be replaced or repaired through a service contractor provided by the warranty company.


Homeowner Benefits

Homeowners that plan to list their home for sale can benefit from a home warranty.  It’s a great way to appeal and attract interested buyers providing additional confidence to present an offer because it adds value. Plus if anything happens to a appliance such as the A/C unit, the seller is covered for the repair or replacement.  A home protection plan will help reduce liability in post-sale situations and also prior to the sale help price negotiation in an upward direction.

Buyers understand the investment they will make in a new home purchase.  A home protection plan offers the assurance and added security in case something goes wrong during the first year of their ownership. In addition, purchasing a home with a warranty plan will bring relief and peace of mind when the unexpected happens on certain appliances and components that are covered in the protection plan.  A buyer can move forward with confidence knowing that their new home includes a warranty.


What Is Covered

What’s great about a home warranty plan is that it can be customized.  Various companies exist and through our research, American Home Shield provides the best value for any homeowner that chooses to have a home warranty protection plan. Here are a list of most items that are covered:

Heating System

Air Conditioning



Water Heaters


Exhaust/Vent/Attic Fans

Built In Microwaves


Garbage Disposals


Trash Compactors


Rust and Corrosion

Ceiling Fans

Garage Door Openers

Telephone Wiring

Built-In Food Centers


Central Vacuums

Smoke Detectors

Improper Installations, Repairs or Modifications

Undetectable Pre-Existing Conditions

Additional Options include: Washer, Dryer, Refrigerator.


Plans and Pricing Options

A home protection plan may vary based on the needs of the homeowner and at what price point will want to pay per month. It is only a one year service plan that begins at the date of closing during the home purchase. And certain plans will have specific packages that cover various items. If an item is covered in a plan and will need repair or replacement, the customer service department will place a customer service request. Then an independent service contractor will be notified to handle the covered request. The service contractor will analyze and determine the issue then repair the item or replace if necessary.   Keep in mind that such warranty doesn’t cover all home systems and appliances which why it’s important for a homeowner to be sure exactly what a plan covers and what it does not cover.

Also keep in mind that certain home issues such as mold, fungus, bio-growth, mildew, rot, toxic material such as lead, sewage, and asbestos are not covered.


What properties shall be considered for a home protection plan? Here’s a list:

Single Family Residence

New Constructions

Condominiums / Townhomes

Multi-Unit Properties

Vacation Homes / Income Properties

Foreclosure Properties


With regard to pricing, a home warranty plan can be very affordable. Some standard plans start at $14 a month. Again, plans and pricing can be customized to best suit the homeowner. Visit the pricing options here to learn more.


If you happen to be a buyer or seller and would like to know more about how you can gain peace of mind during a home sale, please contact us directly.

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