For today’s homeowners, the real surprise in the real estate market isn’t just the purchase price, but the costs that come afterward. As America’s housing stock ages, home repair and maintenance costs are rising faster than many buyers expected.
According to the American Home Shield® 2025 survey of first-time homeowners, nearly half regret not considering maintenance and repair costs when creating their budget.
For real estate agents, this change has major implications. Higher maintenance expectations can make older homes harder to sell, inspections more complex, and negotiations more difficult.
Actual cost of failure risk
According to a 2025 analysis by AHS, homeowners spend about $5,775 a year on home maintenance costs, while new homeowners can spend as much as $12,225 in the first year alone.
For further insight, below is the average breakdown of what homeowners can expect to pay to repair or replace major systems and appliances in their home.
Repair/replacement costs are in the 80th percentile, as reported in the 2024 National Homeowner Survey conducted by ClearVantage for American Home Shield.
These are not outlandish amounts and reflect the actual cost of maintaining appliances and systems. For agents, this type of financial exposure during or after closing can impact buyer enthusiasm or force renegotiation.
What this means for agents (and their clients)
Agents are navigating a more cautious and cost-conscious buyer demographic. According to a 2024 AHS study, one in three homeowners admit that they “sometimes panic” when something breaks because of the high cost of repairs to their home.
Where home warranties apply
With maintenance costs rising, a home warranty is a practical way to reduce unexpected breakdowns and stay in business.
For buyers: A home warranty helps manage the maintenance of covered items. Instead of facing a $6,000 bill after you move in, a warranty can help absorb that risk.
For sellers: Offering a home warranty increases buyer confidence and strengthens the deal. Warranties also help reduce the likelihood of repair-based concessions and renegotiations.
For agents: A home warranty can serve as a negotiation tool and a reassurance mechanism during difficult conversations. This puts agents in a proactive, solution-oriented position.
Help customers understand repair risks more effectively
Agents can increase client confidence and readiness by:
Normalize the discussion around the true cost of homeownership Set realistic expectations using concrete home repair price benchmark data Implement home warranties early as part of your risk management strategy
These conversations allow clients to feel informed, protected, and confident before problems occur.
Key points to survive today’s real estate market
Long-term increases in home repair costs are changing buyer sentiment and putting even more pressure on agents. As your home ages and expenses increase, tools to reduce uncertainty, like American Home Shield’s home warranty, can help you stick to your budget, support your confidence, and keep your transactions on track. Staying ahead of the cost curve is more than just giving sage advice. It is essential to guide buyers and sellers in today’s market.
Partner with American Home Shield today
To explore American Home Shield real estate coverage or learn how to join our community of real estate professionals, visit ahs.com to find the protection your clients can trust.
