When Is the Best Time to Add a Home Warranty? 

A homeThat warranty can provide additional peace of mind to nervous buyers. It will give them confidence because, as they can be confident that home systems and appliances are protected when they break down due to normal wear and tear. in the event of a disaster. 

Keep reading to learn the best time to add a home warranty—and what the benefits are!

• Benefits of Real Estate Home Warranties
• When To Add A Home Warranty
  
• How Long After Buying A Home Can You Get A Warranty?
  
• Add A Home Warranty Today

Benefits of Real Estate Home Warranties

If you’ve ever worked with real estate clients, you’ve likely seen the benefits of home warranty coverage firsthand. 

Perhaps you’ve witnessed a seller who experienced a major system malfunction when the house was under contract, threatening to derail the deal. Or, maybe you’ve had a client move into their dream home only to have an expensive appliance fail within a few days. 

These disasters aren’t just stressful; they can be detrimental to the relationship and the transaction. 

But a real estate home warranty can be valuable to everyone in the transaction, including the sellers, buyers, and real estate agents.

Advantages For Sellers

Why would a seller offer a home warranty? Well, plenty of reasons. Three of the biggest:

1. Enhanced Marketability: A home warranty can make a property more attractive to potential buyers, giving it a competitive edge in the market. It provides an added layer of security, which can be a significant selling point.
2. Protection During Listing: Sellers are protected from unexpected costs associated with covered repairs or replacements of major systems and appliances while the home is on the market. This can prevent potential deal-breaking issues from arising.
3. Peace of Mind: Knowing that any major breakdowns will be handled by the warranty can reduce stress and provide peace of mind for sellers during an already stressful the selling process.

4. Reduced Negotiations: With a home warranty in place, sellers might face fewer negotiations and price reductions based on the condition of home systems and appliances, as the warranty covers many of these items.

Advantages For Buyers

Buyers also see major benefits when a home warranty is involved:

1. Budget Protection: A home warranty provides financial protection against the cost of repairs or replacements of covered systems and appliances that break down  might fail due to normal wear and tear after moving in, no matter their age.
2. Ease of Transition: Moving into a new home can be overwhelming. A home warranty ensures that buyers have a reliable resource for repair services, reducing the stress of finding and vetting contractors in an unfamiliar area.
3. Inspection Negotiations: A home warranty can help address issues found during the home inspection, making it easier to negotiate repairs or replacements and facilitating a smoother transaction process.

4. Confidence in Purchase: Buyers are more likely to proceed with a purchase knowing that they won’t be hit with unexpected repair costs shortly after closing.

Advantages For Real Estate Agents

Real estate agents on both sides love when a home warranty is involved. Here’s why:

1. Simplified Transactions: Home warranties can help resolve inspection issues quickly, making the transaction smoother and reducing the chances of deals falling through due to repair disputes.
2. Client Satisfaction: Offering a home warranty as part of the transaction can enhance client satisfaction and build trust, leading to repeat business and referrals.
3. Value Addition: Providing a home warranty demonstrates the agent’s commitment to the client’s best interests, adding value to their services and potentially increasing their reputation in the market.

Plus, our real estate pro partner program unlocks even more benefits!

When To Add A Home Warranty

The timing of your home warranty can have a significant impact on your sale. Here’s how it breaks down via timing and coverage options:

• At Listing
• At Offer
• After Inspection
• At Closing
• Up to 60 Days After Closing

At Listing

One of the most advantageous times to add a home warranty is when you list a property for sale. For prospective buyers, a home warranty gives extra confidence that they won’t be on the financial hook for unexpected (and covered) repairs or appliance breakdowns. 

And that’s enough to make your home an even more attractive purchase, especially when you’re using the American Home Shield® home warranty with the Seller Coverage Option.

For real estate agents, the home warranty coverage can help reassure potential clients, giving them the confidence they need to proceed with an offer.

Some of the biggest advantages of the Seller Coverage Option:

• The warranty transfers to the buyer and becomes effective at closing. 
• Payment isn’t due until closing. 
• Sellers enjoy coverage for up to six months.
• The Seller Coverage Option covers the same items as the ShieldEssential plan. 
• Coverage extends up to a $1,500 cap for all trades during the listing period.

At Offer

Including an American Home Shield home warranty in real estate purchase contracts makes sense for many reasons. Two major reasons:

• Your buyers will enjoy the reassurance of knowing they’ll have budget protection for covered system components and appliance malfunctions that happen after closing due to normal wear and tear. 
• If buyers are moving into a new area, they’ll also rest easy because they’ll know who to call for help with covered breakdowns instead of frantically searching for reliable, reputable contractors in a new area.

After Inspection

The addition of American Home Shield home warranty coverage can help mitigate inspection report findings and may facilitate inspection issue negotiations. There’s no inspection required for American Home Shield home warranties and no age limit on systems and appliances. 

Coverage also includes:

• Undetectable, pre-existing conditions
• Breakdowns caused by lack of maintenance, improper installations, repairs, or modifications
• Malfunctions due to sediment, rust, or corrosion
• Removal of old, defective items

At Closing

Buyers can add American Home Shield home warranty protection at closing so they can enjoy the budget protection and repair convenience in their new homes at special Real Estate Edition prices. 

They can choose the plan that best suits their needs and even customize options. Plus, adding coverage is simple, quick, and won’t delay the transaction. 

Up to 60 Days After Closing

Many agents and clients don’t realize that buyers can add an American Home Shield home warranty plan up to 60 days post-closing and receive the same valuable protection at Real Estate Edition special prices. Be sure to remind your clients that they still have time if they didn’t opt for coverage before their transaction closed.

How Long After Buying A Home Can You Get A Warranty?

If a home warranty isn’t included in the sale, good news: You can purchase a home warranty at any time, regardless of how long you’ve lived there.

So, if you’ve only owned the home for two weeks or two decades, you’re eligible for a home warranty plan of your choice. 

How Soon Can I Use American Home Shield?

While you can purchase a warranty at any time, most come with a brief waiting period. The American Home Shield waiting period, for example, is 30 days unless you get a real estate home warranty plan, which you can use immediately.

Add A Home Warranty Today

Home warranties are included in more than 300,000 real estate transactions every year. Don’t let your clients miss out on this important protection—and make sure you pick the right warranty provider.

Purchase an AHS® Home Warranty today to protect those assets most important to your family’s well-being while improving your home-selling journey. Check out our testimonials to see how beneficial our warranty planscontracts really are!

If you’re already an American Home Shield member, simply register for MyAccount PRO to securely access American Home Shield at your convenience to enter new home warranty plan applications, along with other tasks. You can also contact your American Home Shield Account Manager for assistance.

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