How Does a Home Warranty Work When Buying or Selling a House

As a real estate professional, you probably get a lot of questions from clients about what home warranties are, how they work, and the advantages of having coverage. Clients may also ask who purchases the home warranty in a real estate transaction if rental properties are covered, if home warranty coverage is worth it, and how long it lasts.

How Does a Real Estate Home Warranty Work?

Home buyers and sellers can receive special pricing for AHS® Real Estate Home Warranty Plans up to 60 days after closing. Simply let your real estate professional know that you would like to include a home warranty plan in your closing transaction.

Real estate clients can choose from three different home warranty plans based on the type of coverage they need.

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Once a home warranty plan agreement is in effect, clients can place a service request online 24/7 for any covered item that breaks down due to normal wear and tear. A qualified, local Pro will then be assigned to their service request and reach out in 24-48 hours to schedule the repair appointment.

With a home warranty plan, AHS members will pay a service fee when they place a request for service. The service fee covers the Pro’s trip to their home. Our members get to choose the amount of their service fee when they purchase their plan.

The assigned Pro will visit your client’s home to diagnose the issue. If the item is covered, the Pro will repair or replace it per the client’s home warranty plan agreement.

American Home Shield gives you the convenience of having one company to contact when appliances or systems break down. Our home warranty plans also help protect your client’s budget by significantly reducing repair costs.

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Who Pays for the Home Warranty - The Buyer or Seller?

A real estate agent will recommend a home warranty to a buyer or seller based on their specific needs and help facilitate the process.

Benefits of a Home Warranty for Buyers

If a buyer loves a particular house but is concerned about the condition of the home’s systems and appliances, or if the home inspector notes that certain systems and appliances aren’t going to last much longer, the benefits of a home warranty can offer a great way to give your client peace of mind.

A home warranty provides assurance that when a covered breakdown occurs, American Home Shield will cover the cost and find the right Pro to make the repair. Home buyers can also roll the annual cost for their home warranty into their closing fees, and coverage will begin on the day of closing.

In addition to important budget protection for covered items, home warranties can serve as a reliable resource for repair help, saving your clients time and frustration when unexpected breakdowns happen.

For questions or more information about American Home Shield Home Warranty Plans, contact your dedicated AHS Account Executive, visit ahs.com/realestate, or call 800 735 4663.

Benefits of a home warranty for sellers

The seller may offer a home warranty as an incentive to make their property more attractive to buyers. It gives potential buyers confidence that they have coverage for system and appliance breakdowns for one year, with the option to renew their home warranty plan annually. It also gives sellers peace of mind that if a covered system or appliance breaks down during the selling period, we’ll handle the repair costs for covered items.

For questions or more information about American Home Shield home warranty plans, contact your dedicated AHS Account Executive, visit ahs.com/realestate, or call 877 916 1876.