Home warranties for real estate agents are one of the most useful tools for a real estate transaction. When used properly, a home warranty can strengthen listings, support buyer confidence, and keep negotiations flowing smoothly. Incorrectly using a home warranty as a bargaining tool in a real estate transaction can create confusion, unrealistic expectations, and post-closing frustration. Knowing what home warranty mistakes are common in real estate transactions can help you avoid them.

Mistake 1: Recommending a Plan Without Reviewing Coverage Details

Not all real estate home warranties are the same, and recommending one without understanding its coverage details can put your credibility as a real estate agent at risk. A lower price tag doesn't always mean better value. Coverage limits, covered items, and exclusions can vary significantly between plans.

But agents don't have to be home warranty experts to help their clients make informed decisions. Through APHW's Warranty Assist program, real estate agents can connect buyers and sellers with our team for help understanding coverage options and ordering a warranty. This takes the pressure off agents to explain every detail while helping clients get the information they need. Ready to schedule a consultation? Click here. 

Mistake 2: Waiting Until After the Inspection to Bring It Up

Many real estate agents don't introduce a home warranty until after the home inspection. But waiting until this point can mean missing an opportunity to use a home warranty as a valuable listing tool.

Introducing a home warranty at the start of a listing can help attract potential buyers by offering added peace of mind about future covered breakdowns. It also gives agents a chance to highlight the benefits of coverage early in the transaction.

A home warranty isn't intended to address problems identified during an inspection. However, it can provide peace of mind for unexpected, covered repairs after closing. An inspection showing that systems and appliances were working can also help establish that a breakdown wasn't pre-existing.

Mistake 3: Overpromising What a Home Warranty Covers

A common home warranty mistake real estate agents can make is presenting a home warranty as a solution for every repair or replacement a buyer might need. While a home warranty can provide coverage for many common home systems and appliances that break down due to normal wear and tear, coverage is subject to the plan’s terms, limitations, and exclusions.

Setting accurate expectations is important in any real estate transaction. Rather than trying to explain every benefit, limitation, or exclusion themselves, agents can connect clients with APHW's home warranty team. Our specialists can answer questions and help buyers and sellers understand what their warranty covers and how it works.

Mistake 4: Limiting Contractor Flexibility 

A major differentiator for APHW is that homeowners can choose their own licensed contractor for covered repairs. Unlike plans that assign contractors through a network, APHW gives homeowners the flexibility to work with a licensed professional they choose.

What are the best home warranty options for real estate transactions? For many agents, contractor flexibility is one of the most-desired options. APHW lets buyers choose their own licensed contractor for covered repairs, which can be a talking point with clients who already have a trusted contractor. 

Work With a Home Warranty Partner Built for Real Estate

APHW offers home warranties for real estate agents who want a straightforward and reliable plan to bring to the table. Our coverage extends to 26 home systems and appliances, the claims process is available 24/7/365, and the freedom to choose a licensed contractor sets APHW apart from other providers. 

Through Real-Pro®, agents can order, manage, and share warranties and access marketing materials from any device. For agents who want to help clients make informed decisions without having to be home warranty experts themselves, Warranty Assist connects buyers and sellers with our team for guidance on coverage options and assistance ordering a warranty. 

Visit the APHW Real Estate Professionals page to learn more or submit a real estate quote request today. 

Terms and conditions apply. Coverage varies by plan. The full terms and conditions are available for download on our website.

Frequently Asked Questions

What are common reasons agents recommend home warranties during real estate transactions?

Agents usually recommend home warranties for several reasons. A warranty may help make a listing more attractive, especially when a home has older, functioning systems or appliances that buyers may be concerned about. It can also help make a listing more attractive to buyers by offering coverage after closing.

What are the best home warranty options for real estate transactions?

The best home warranty option depends on the home and the client's priorities. Despite these variables, some factors consistently appear in any real estate transaction. Look for a plan that offers clear coverage terms, a responsive claims process, and the option to choose your own licensed contractor. APHW covers 26 home systems and appliances, includes roof leak coverage in its standard plan, and allows homeowners to choose their own licensed contractor, making it a strong option for homeowners. 

How should real estate agents explain a home warranty to clients?

Real estate agents don't need to explain every detail of a home warranty themselves. A good starting point is helping clients understand that a home warranty provides coverage for certain home systems and appliances, subject to the plan's terms and limitations. For more detailed questions, agents can connect buyers and sellers with APHW's home warranty team.