Best home warranty for sellers

Our top 4 home warranty picks for sellers

1. Best overall: Cinch Home Services
2. Best for transferring plan to new owner: Choice Home Warranty
3. Best for customer service: Regency Total Warranty
4. Best for plan selection: Old Republic Home Protection

Compare top home warranties for sellers

Methodology

To find the best home warranty companies for sellers, the ConsumerAffairs Research Team used a data-driven approach guided by our expert editors.

We researched 49 home warranty companies and scored them using measurable criteria grouped into two main categories:

1. Key home warranty company features

Companies earned higher scores for offering:

• Seller-specific plans
• Longer service guarantees
• More plan options
• Plans that allow transferring to a new homeowner

2. Customer satisfaction metrics

We conducted sentence-by-sentence sentiment analysis of thousands of verified reviews to measure customer satisfaction with:

• Coverage
• Pricing fairness
• Refunds and payout experience
• Customer service quality
• Claims handling
• Punctuality and speed
• Service technicians

Each company received a score from 1 to 10 for every metric, with 10 awarded to the top performer in that category. Metrics are weighted differently for each award calculation.

The company with the highest score in each category’s uniquely weighted formula was given the “Our pick for” designation. In some cases where a single company received the top score across multiple categories, the company with the second-highest score was named the winner.

Home warranties for sellers: a guide

Selling a home involves countless moving parts, but few things can derail a deal faster than a broken air conditioner discovered during the final walkthrough. When major systems or appliances fail during the listing period, sellers face a tough choice: pay thousands for emergency repairs or risk losing the sale.

A home warranty comes in handy in this scenario. The coverage protects against unexpected repair costs while the home is on the market. It also transfers to buyers at closing, providing them with peace of mind that can make your property more attractive than competing listings.

How to choose a seller home warranty

To choose the right home warranty as a seller, you must balance your protection needs with what buyers value most.

1. Consider your selling timeline

Think about how long your home might be on the market and whether you can afford surprise repairs during that period. If you’re selling quickly in a hot market, basic coverage might suffice. However, homes anticipated to sit for months could benefit from comprehensive protection against unexpected breakdowns.

2. Identify deal-breaking systems

Focus on items that could kill your sale if they fail during showings or inspections. HVAC systems top this list since buyers often walk away from homes with heating or cooling problems. Water heaters, electrical panels and major appliances such as refrigerators can also derail deals if they stop working.

3. Match coverage to buyer expectations

Your listing agent can advise on local market trends and what coverage levels help homes sell faster. Some areas favor comprehensive plans, while others see appliance-only coverage as enough.

4. Plan for negotiation leverage

Home warranties help attract buyers during the sales process

Choose a warranty that gives flexibility during price negotiations. Offering to upgrade warranty coverage can be an alternative to reducing your asking price when buyers push for concessions.

Look for providers that allow easy plan modifications or add-ons during the sales process. If buyers request specific coverage for pools or extra appliances, you want the ability to accommodate them.

Warranty coverage for sellers

Home warranties for sellers cover major systems and appliances that could break down during the listing period or after closing.

Here’s what standard coverage typically includes:

• HVAC systems, plumbing and electrical components
• Water heaters and built-in appliances, such as refrigerators and dishwashers
• Smaller items, such as garage door openers, ceiling fans and garbage disposals

The coverage protects sellers from expensive repair bills while their home is on the market and transfers to buyers at closing. When a covered item fails, sellers pay a service fee often ranging from $75 to $150, and the warranty company handles the rest through its contractor network.

Most warranties have exclusions that sellers should understand before buying coverage. Preexisting conditions, poor maintenance and cosmetic issues usually aren’t covered. Some plans also impose coverage limits that might not fully cover expensive repairs.

Did you know? Home warranties differ from homeowner’s insurance in purpose and scope. Insurance covers sudden damage from events such as theft, fires or storms, while warranties handle predictable breakdowns from wear and tear. Both should work together rather than replace each other.

Pros and cons of home warranties for sellers

Home warranties are often worth it for sellers, but they also come with limitations worth considering.

How much do home warranties cost for sellers?

Standard home warranties usually cost sellers between $350 and $700 for the year, depending on coverage level and location.

Monthly premiums

Sellers can expect to pay $30 to $60 per month for home warranty coverage. Basic plans covering essential systems start at the lower end, while comprehensive plans protecting systems and appliances cost more. Some home warranty companies offer flexible service fee options that let you choose higher deductibles to get lower monthly premiums.

Service call fees

Each repair visit requires a service fee ranging from $75 to $150, regardless of whether you’re the seller or buyer. This fee covers the technician’s diagnostic visit and applies each time you file a claim. If you don’t expect many repairs during your listing period, plans with higher service fees but lower monthly costs might save money.

Add-on coverage costs

Optional coverage for pools, septic systems or extra appliances may add $2 to $20 per month to your premium. If your home has specialty features such as spas, well pumps or second refrigerators, factor these costs into your budget. These add-ons often appeal to buyers and can justify the extra expense.

Other cost factors for sellers

Your home warranty cost depends on your property’s size, age and location, plus local labor costs. Larger homes with more systems cost more to cover, while regional differences affect both premiums and service fees. Weigh these costs alongside other selling expenses, including staging and repairs, when budgeting for your home sale.