For today’s homeowners, the real surprise in the real estate market isn’t just the purchase price — it’s the costs that come afterwards. As the U.S. housing stock continues to age, home repair and maintenance costs are rising faster than many buyers expect.
According to an American Home Shield® 2025 survey of first-time homeowners, nearly half regretted not factoring in maintenance and repair costs when budgeting.
For real estate agents, this shift has real implications. Rising expectations for upkeep can make older homes harder to sell, inspections more complex and negotiations more difficult.
The real cost of breakdown risk
A 2025 analysis by AHS shows that homeowners spend about $5,775 per year on home maintenance costs, while new homeowners may spend as much as $12,225 in their first year alone.
For even more insight, here’s an average breakdown of what homeowners can expect to pay for repair or replacement of their home’s major systems and appliances:
Systems and Appliances Typical Range Average Highest Estimate Heating (furnace) repairs $125 to $480 $5,600 Cooling (AC) repairs $150 to $650 $6,000 Refrigerator repairs $125 to $500 $1,800 Washer and dryer repairs $100 to $400 $850 Oven repairs $150 and $350 $1,200 Dishwasher repairs $100 and $300 $900 Minor plumbing repairs $125 to $350 – Major plumbing repairs $500 to $800 –Repair/replacement cost is the eightieth percentile as reported in a nationwide survey of homeowners conducted in 2024 by ClearVantage for American Home Shield.
These aren’t outlier amounts — they reflect real home appliance and system maintenance costs. For agents, that kind of financial exposure during or after closing can affect buyer enthusiasm or force renegotiations.
What this means for agents (and their clients)
Agents are navigating a more cautious, cost-conscious buyer pool. According to a 2024 AHS survey, 1 in 3 homeowners admitted they sometimes “panic” when something breaks because of steep home repair prices.
Where home warranties fit in
With maintenance costs rising, home warranties are a practical way to reduce breakdown surprises and help keep deals moving.
For buyers: A home warranty can help control maintenance for covered items. Instead of confronting a $6,000 bill after move-in, a warranty helps absorb that risk.
For sellers: Offering a home warranty can help enhance the deal by boosting buyer confidence. A warranty may also help reduce the likelihood of repair-based concessions or renegotiations.
For agents: A home warranty serves as a negotiation tool and a reassurance mechanism during challenging conversations. It positions you, the agent, as proactive and solution-oriented.
Helping clients understand repair risk more effectively
Agents can strengthen client trust and preparedness by:
- Normalizing discussions about the true cost of homeownership
- Using concrete home repair price benchmark data to set realistic expectations
- Introducing home warranties early as part of a risk-management strategy
These conversations help clients feel informed, protected and confident, before problems arise.
Key takeaways for navigating today’s real estate market
- The long-term increase in home repair costs is reshaping buyer psychology and putting more pressure on agents.
- As homes age and expenses climb, tools that reduce uncertainty — like American Home Shield home warranties — can help protect budgets, support confidence and keep transactions on track.
- Staying ahead of the cost curve isn’t just smart advising; it’s essential to guiding buyers and sellers in today’s market.
Partner with American Home Shield today
To explore American Home Shield’s real estate coverage — or learn how to join our community of Real Estate professionals — visit ahs.com and discover protection your clients can rely on.
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