Not including a home warranty with every home sale transaction is our greatest competition and may end up being one of your biggest threats. If home system and appliance breakdowns catch new homeowners off-guard, they may expect you—their agent—to cover the repair and replacement costs. As the real estate housing market shifts in 2023, it is more important than ever to include a home warranty with your listings to boost sales and protect your commission!
The National Association of REALTORS® predicts an overall decline in home sales for the next several months, while properties are also expected to sit on the market longer than they have in recent years. But don’t be alarmed! Even the most conservative real estate market predictions project over 4 million home sale transactions in 2023, giving you millions of opportunities to differentiate your listings with a home warranty in this shifting market!
Non-contingent offers can pose a serious threat to both buyers’ and sellers’ agents. There are documented cases in which buyers allege they were not offered home warranty protection before the close of escrow. In some cases, the buyers claim that their agents told them only non-contingent offers would be considered. In other instances, buyers have argued that the agents and sellers conspired together to pressure the buyer into making a non-contingent offer.
When they faced significant home system and appliance repair costs shortly after moving in—costs that may have been covered under a home warranty—the buyers successfully sued their REALTOR® for several thousands of dollars.
Protect your commission by encouraging your clients to avoid making non-contingent offers. However, if buyers insist upon submitting one anyway, agents should explain the risk in writing and obtain signatures to lessen the threat of litigation.
However, a more reliable way to protect yourself is to include a home warranty with the listing. Simply having a home warranty in place may discourage litigation and can help prove that you did your due diligence by protecting your client. Even if you don’t pay for the warranty as a closing gift*, mitigate your risk by offering the home warranty to the buyer for purchase. If they decline, have them sign the Declination of Coverage in our home warranty brochure and save it in your files for future protection.
Recent reports indicate that over 40% of home sellers gave concessions to homebuyers at the end of 2022. This gives you the unique opportunity to sharpen your negotiation skills when representing your clients. Sure, it’s hard work but that’s how great agents are made! Any agent can do 90% of the work when closing a deal, but those who overcome the final 10% gain the greatest success!
Including a home warranty with your listings could help you earn more business while also mitigating your risk. You work hard for your clients and deserve the same level of protection they do. Keep your lead in the race to provide your clients with the best care possible! Include an Old Republic home warranty with every transaction.
*Except where prohibited by law.
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