Anytime a home is part of a real estate transaction, an opportunity exists to protect it with a home warranty plan. For real estate professionals, purchasing a home warranty for your clients is one of the simplest ways to boost attraction factor, particularly for older or hard-to-sell-properties.
Why a Listing Agent Should Buy the Home Warranty
Advertising that a listing includes a home warranty not only adds an attractive selling point to the property to give buyers peace of mind, it can actually get the home sold faster for a higher price. A study by the Service Industry Council found that properties that come with a home warranty typically sell for $2,300 more and 11 days faster than homes without a warranty. A faster sale means a quicker payout for the seller — and to the listing agent. This is a true win-win.
Listing agents who want to stand out from the competition can offer home warranties as part of their standard listing package. This shows prospective sellers that they care about using every available tool to make a listing more attractive to stand out against other competitive listings. Additionally, sellers can rest easy, knowing their major appliances will be fully covered during the listing period.
Purchasing a home warranty can also attract a specific type of audience: first-time buyers. They’re more likely to buy a home that includes a home warranty, since they have less experience with appliance repair cost and don’t want to worry about these future expenses. As an added benefit, when a real estate agent advertises a home with a home warranty included, the home warranty company will usually provide free listing coverage.
How Selling Agents Stand Out When Offering Home Warranties
When you want to show your buyer client that you have their protection and best interests at heart, buying a home warranty for them is a perfect way to show them you care about them during AND after the sale.
Buyers don’t want to spend money on broken appliances and other home repairs that may arise shortly after purchasing a home. Seller agents can offer to purchase a home warranty for a buyer client on listings where one isn’t already offered. For buyers who are still on the fence and need that extra push to make a purchase, the home warranty can be the added security that seals the deal.
Seller agents who want to attract first-time homebuyers can also offer a home warranty as part of a ‘first-time homebuyer’ package to set them apart from other agents.
Boost Your Business with Home Warranties
Whether you are ready to advertise a listing for the first time or you have a home that is taking longer than usual to sell, a home warranty can be a convincing factor in the mind of an undecided buyer. And while it can vary by state, it is typically easy for a listing/seller agent purchaser to transfer the home warranty into the buyer’s name. The buyer then usually has 60 days to add additional items to the home warranty.
As a listing or seller agent, buying a home warranty for your client can result in the following:
Happier sellers whose home is more competitive with an included warranty
Higher earnings for you, the listing agent, if the home sells for more as a result
Peace of mind for satisfied buyers and sellers
More referrals coming from these satisfied buyers and sellers
Offer Your Clients the Best
Buying your real estate E&O insurance through CRES gives you access to special home warranty products with CRES Qualified home warranty partners. We’ve partnered with some of the nation’s leading home warranty companies to provide you with coverage and services not available anywhere else in the industry. Some of these exceptional benefits include up to $50,000 in Seller’s E&O insurance for your seller clients, and optional $10,000 in structural coverage for the homebuyer.
What If You Need Legal Advice?
As a CRES member, you have access to the ClaimPrevent® Legal Advisory Hotline, for phone consultations, document review, and more with a local real estate attorney. You can call them 7 days a week for support during a home sale or even around home warranty issues.
How has purchasing a home warranty helped YOU achieve success in real estate? Tell us your story in the comments below!
This blog/website is made available by CRES Insurance Services for educational purposes to give you general information and understanding of legal risks and insurance options, not to provide specific legal advice. This blog/website should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. Claims examples are for illustrative purposes only. Read your policy for a complete description of what is covered and excluded.
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