What Does A Seller’s Home Warranty Cover?

A seller’s home warranty is similar to a general home warranty contract. As a seller, you can be confident that if any covered system or appliance fails during the closing process, you will not be required to pay for the repair. But do you know what a seller’s home warranty covers?

We have answered the question in this blog, so keep reading to learn about the potential benefits you can get with a seller’s home warranty.

What Is A Seller’s Home Warranty?

A seller’s home warranty covers the home systems and appliances and offers low-cost repair services during the listing period. With such services, sellers feel confident having extra protection for home items. Also, they can rest assured that the company will dispatch a professional to resolve the issue if anything happens. Moreover, sellers purchase these plans within 30 days of closing.

Many companies offer free listing coverage of 3-6 months under the seller’s coverage and may also provide marketing tools to help sell the home faster. Companies may allow transferring the seller’s home warranty to the buyer post-sale. However, checking the home warranty contract to understand the coverage, services, terms, and limitations is crucial.

What Is Covered Under Seller’s Home Warranty?

A seller’s warranty covers the major home systems and appliances, such as:

  • Electrical systems
  • Refrigerators
  • Ovens/Stoves/Microwaves
  • HVAC systems
  • Dishwashers
  • Water heater
  • Garbage disposal
  • Washer/Dryer
  • Plumbing systems

Additionally, sellers can opt for more items as optional add-ons at some extra cost, such as

  • Spa
  • Swimming Pools
  • Roof leaks
  • Stand Alone Freezer
  • Second Air Conditioner

Note: The coverage solely depends on the company and its offerings. We recommend you read the fine print carefully to understand the coverage.

Best Home Warranty Companies For Seller’s Home Warranty

To help you choose a suitable option, we have narrowed down a list of top-rated home warranty companies that offer a seller’s home warranty. They provide extensive coverage, 24/7 customer support, high payouts, and comparable services.

How Much Does A Seller’s Home Warranty Cost?

A seller’s home warranty price varies depending on the plan, coverage, extras added, location, and type of residence (single-family & multi-family homes, mobile homes, and condos/townhomes). Typically, it ranges from $459 to $829 per year but can go higher up to $2000, depending on the coverage specifics.

You will also be required to pay deductibles at the time of each service visit and the premiums. Again, the service call fee varies depending on the company selected and typically ranges from $60 to $125.

Seller’s Home Warranty Exclusions

All home warranties come with certain limitations and exclusions, including your seller’s home warranty! Check out the list below to know what your plan may not cover.

  • Costs Of Construction And Modifications Limitation
  • Cosmetic Damage
  • Accidental Acts Or Misue
  • Pre-Existing Conditions
  • Manufacturer’s Defect
  • Routine Maintenance
  • Commercial Use
  • Chimneys & Exhaust Lines

Apart from these exclusions, your home warranty will protect your home items up to a certain limit. For instance, American Home Shield will cover appliances up to $6k per term. Likewise, all home warranty companies have such coverage limitations.

Note: There may be other exclusions to your service contract. Hence, we recommend reading the fine print carefully to understand the coverage and limitations.

Do You Need A Seller’s Home Warranty?

Is it worthwhile to spend your money on a Seller’s home warranty? Let’s find out the answers in this section.

  • It Helps You Successfully Market Your PropertyEvery seller expects a higher return on their investment. You can gain an advantage and stand out by including a seller’s home warranty in your listing.
  • You Can Get Assistance with Unexpected RepairsUnforeseen systems or appliance breakdowns can hinder your profit. But, if a covered item breaks while your property is under a seller’s warranty, the provider can help you find a skilled technician and cover the cost of the necessary fixes.
  • Hence, Closing Is Made SimplerAccording to the National Home Warranty Association, homes with a warranty typically sell 50% quicker than those without. Negotiations can also be simplified as you may toss the seller’s warranty for free to the buyer to ensure that issues will be taken care of by you.

How To Get A Seller’s Home Warranty

With the market flooded with home warranty companies, it can be challenging to choose the perfect option. However, we’ve got you covered. Here are the steps to choosing a good seller’s warranty plan. Take a look.

  • Opt for a home inspectionA home inspection is a crucial step in purchasing a home warranty. It aids in determining the house’s coverage requirements. In this manner, you can be assured that a home warranty will cover those components.
  • Explore home warranty plansCheck out the home warranty providers. You can seek advice from friends, real estate brokers, and other sellers by reading reviews online.
  • Ask For Free QuotesIt is advised to get quotes from reputable home warranty providers and carefully read the sample service contract before choosing a plan.
  • Compare PlansIn the end, compare the companies you’ve shortlisted, their plans, and their prices to determine which is best for you.

Note: You can buy a seller’s home warranty either through a real estate agent or through the company’s website.

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