Do you need a seller's home warranty?

A couple agreeing to buy a home


While most people may believe that home warranties are for home buyers and existing homeowners, home sellers can also benefit greatly from home warranties. 

A seller's home warranty can give you important coverage while your home is on the market. And when your home sells, offering a home warranty with the purchase will increase the buyer's confidence in their new investment. 

In a real estate purchase, there is a waiting period between the time an offer is made on a home and the final closing date. Unfortunately, during this time under contract, problems in the home can still occur. Whether you're selling a well-loved house or a newer home, there's no way to know for sure when the regular wear and tear on appliances will turn into an urgent repair need. If it's summertime, you can't have the air conditioning unit stop working. And, if it does, that is still your problem, as the current homeowner, to fix. 

A home warranty service contract with sellers’ coverage will ensure you are covered and protect the transaction by addressing any problems that may arise while your home is under contract. 

Keep reading for your guide to sellers’ home warranties, which can help you decide if a warranty plan and service contract is right for you. All home warranty companies vary in their limitations on coverage. Be sure to read your service contract to understand what your warranty covers and if there are any coverage caps for your home’s major appliances and systems.


What is a home warranty service agreement?

A home warranty service agreement is an annual service contract that covers the normal wear and tear of your home's critical systems and appliances. Often referred to as a home warranty or homeowner warranty, a home warranty service agreement will provide financial protection from unexpected out-of-pocket expenses in the event a covered item needs repair or replacement.
Home warranty protection typically includes major built-in home systems, such as HVAC, electrical, garbage disposal, sump pump, plumbing and water heaters. Warranty protection also covers appliances, such as washers and dryers, ovens, stovetops, refrigerators and microwaves.
Coverage protects homeowners from paying out-of-pocket expenses when one of these systems or appliances requires you to repair or replace an item due to normal wear and tear.


When do you need a home warranty service agreement?

While it is never too soon to maximize your coverage and limit your financial risk, there are specific times when a home warranty should be considered. 

Home sellers benefit from sellers’ coverage while the home is on the market. The warranty can be a selling point that helps give buyers peace of mind after a home inspection.
Home buyers will also want a home warranty since, oftentimes, there is limited paperwork detailing the maintenance on a home's systems and appliances.

Current homeowners can purchase a home warranty at any time for a home of any age. At some point, home systems and appliances will fail, and this will give the homeowner financial protection for unforeseen issues.
And finally, real estate agents may offer to purchase a warranty on their client's behalf whether they represent the seller or the buyer. Most of the time, this is to ensure the home sale goes through without any hiccups.


What are the perks of seller's coverage when the home is on the market?

With the seller's home warranty coverage, you won't be caught by surprise when unexpected breakdowns happen. This type of plan, specifically for home sellers, can also: 

  • Help your home sell faster 
  • Connect you to service quickly (Cinch is available 24/7/365)
  • Add value and differentiation to your listing
  • Mitigate your risk for unforeseen issues
  • Provide an industry-leading 180-day workmanship guarantee
  • Give confidence to the buyer, helping protect the transaction (According to Gallup, 8 out of 10 buyers prefer to buy a home protected by a home warranty.)

Where permitted by law, Cinch seller's coverage is available free of charge on the condition that an annual service agreement is purchased once the sale is completed. In most cases, the seller will pay for the agreement for the buyer. 


Using sellers’ home warranty coverage is straightforward and simple.

The selling period is stressful enough and the last thing a seller needs is additional complications.
Should one of the home's systems or appliances break down due to wear and tear while on the market, it is easy to make a service request. Sellers can submit a service request online or by phone, and a qualified contractor will schedule a visit to the home. 
The only costs a seller would have to pay is a small service fee, which is similar to an insurance deductible, to the service provider.
This type of warranty coverage can be especially useful while under contract when it can be unclear which party is responsible for what. Sellers can use a service agreement to protect themselves and their finances without jeopardizing the upcoming closing if a system or appliance stops working properly.


What kind of post-closing disputes can come up if you do not have a seller's home warranty?

Maintenance and repairs for home systems and appliances are an important part of homeownership. Neglect that goes undisclosed from a seller can pose legal issues down the road if the buyer tries to hold the seller responsible for repairs after closing. 

A home warranty service agreement can protect a seller from post-closing disputes with the buyer. Disputes can result in something as minor as a letter addressed to the seller that demands they cover the cost for repair or replacement to major lawsuits seeking damages.
Rather than going after the seller for these problems, a buyer can use the warranty to remedy any issues related to a home’s systems and appliances as long as the covered items were in good working order.


How do you file a service request with your warranty company using your seller's home warranty?

You can request service anytime with your Cinch seller’s home warranty. 

Click on Request Service or log in to My Account at

A seller's home warranty can provide important coverage while your home is on the market. Check out this guide to help you decide if a warranty plan and service contract is right for you.