Benefits of a Home Warranty for Sellers

When you’re selling a home, even small repair surprises can turn into major setbacks. That’s where a home seller’s warranty comes in.

What is a seller’s home warranty?

A seller’s home warranty is typically part of a home warranty that the seller agrees to purchase for the buyer. When a seller includes a home warranty as part of the listing, they receive coverage during the listing period, and the coverage then transfers to the buyer at closing for a full year.

This provides protection for unexpected covered breakdowns throughout the entire transaction: the seller is covered while the home is on the market, and the buyer gains coverage once the sale is complete.

Seller’s home warranty coverage is different from homeowners insurance, which protects against events like fire or theft, and from a home warranty that a buyer purchases for themselves after closing. With a home warranty for home sellers, the goal is to provide peace of mind for both parties from listing to closing and beyond.

*See the plan agreement for coverage details, including service fees, limitations and exclusions. Coverage limits and charges for non-covered items may apply.

Benefits for sellers

A seller’s home warranty can make a big difference when you list your home. Because coverage begins during the listing period, it helps you:

• Limit unexpected repair costs if a covered system or appliance breaks before closing

  
  
• Help prevent deals from derailing if there are covered issues found during the inspection

  
  
• Attract more buyers by offering a home warranty that will transfer to them at closing, adding confidence to your listing

With a home warranty for home sellers, you’re not just protecting your budget—you’re also making your home more appealing to buyers. Real estate professionals often see a home seller’s warranty as a way to reduce friction, build buyer trust, and keep the sale process moving smoothly.

Benefits for buyers

Warranties benefit sellers, but they help buyers feel confident, too. When coverage transfers at closing, buyers gain:

• Peace of mind that they’ll have support if a covered system or appliance breaks soon after move-in.

  
  
• Reduced stress during the buying process, knowing unexpected breakdowns are less likely to derail their plans.

  
  
• A solution for covered home system and appliance breakdowns after closing, with access to trusted repair Pros when they need them most.

By including a home warranty in the transaction, both sides walk away with greater confidence and fewer “what ifs.”

*See the plan agreement for coverage details, including service fees, limitations and exclusions. Coverage limits and charges for non-covered items may apply.

American Home Shield® Real Estate Home Warranty Plans

Seller’s home warranty coverage

With AHS, sellers can add the Seller Coverage Option* to the plan they’ll provide to the buyer. It includes the same items as ShieldEssential℠ (heating, air conditioning, plumbing, and electrical) and can protect the seller for up to six months while the home is on the market, with payment collected at closing. The warranty then transfers to the buyer and becomes effective the day of closing. 

*Seller Coverage Option is subject to a $1,500 cap during the listing period. Renewable upon review at the discretion of American Home Shield after a 6-month period,
up to 12 months. See the plan agreement for coverage details, including service fees, limitations and exclusions. Coverage limits and charges for non-covered items may apply.

How to secure seller coverage

Adding a home warranty to your real estate listing can help protect both sellers and buyers while making your home stand out. Here’s how to secure Seller Coverage* through American Home Shield:

1. Get a quote: Start by entering your address and information on the American Home Shield website to compare accurate plan options and pricing.

   
   
2. Purchase a home warranty: Select the plan that fits your needs and add on the Seller Coverage Option. This provides protection for key systems while your home is on the market.

   
   
3. Add it to your listing agreement: Let your real estate agent know you’re including an AHS home warranty so they can feature it in the listing details and contract.

   
   
4. Promote it in your marketing: Highlight the home warranty in your property description and open house materials to signal confidence and peace of mind to prospective buyers.

   
   
5. Transfer coverage after closing: Once the sale is complete, the home warranty seamlessly transfers to the buyer, providing continued protection and added value for a full year after closing.

Including seller coverage* is a simple way to strengthen your listing and reassure potential buyers that they’re making a confident investment.



Looking for more tips? Check out the AHS Homeowner Hub for more guides and resources, including our guides to common new home issues and how to avoid buyer’s remorse.

*See the plan agreement for coverage details, including service fees, limitations and exclusions. Coverage limits and charges for non-covered items may apply.

AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.