Agent liability is at its highest: How a home warranty helps
The current Seller’s market is extremely tough on Buyers. It’s forcing them to take more risks, overpay, and do whatever they can to provide the “cleanest” offer to win the deal. Unfortunately, this means that your liabilities are at their highest right now, despite your best efforts to help your clients in a relentless market. We want to show you how a home warranty from 2-10 Home Buyers Warranty (2-10 HBW) has never been more valuable to you and your clients than now.
A home warranty can cover your assets by reducing liabilities
More than we’ve seen in quite some time, Buyers are waiving home inspections in an effort to provide the cleanest offer. This can be a dangerous strategy for both your Buyers and you.
One of the biggest causes of lawsuits against Buyers agents is failing to recommend an inspection, according to Inman. With so much competition, your clients might be willing to take that risk, despite the long-term consequences. But how can you protect yourself in this situation? The answer lies in offering home warranty coverage.
How a home warranty can help in this situation
As a Buyer’s agent, it’s your duty to inform your clients about the property they intend to buy. If you encourage Buyers to waive an inspection for the sake of offering a “clean” deal, you may expose yourself to legal trouble.
For example, say your Buyer waives an inspection (whether you encouraged them to or not). Then, they find something seriously wrong with their plumbing system or air conditioning a month after closing. That Buyer could try to sue you for “allowing” them to buy a home with major system and appliance issues. Even if they don’t win, that’s still time and money you need to spend defending yourself.
Offering a home warranty from 2-10 HBW can help protect you and your clients in this situation.
By offering a home warranty for your Buyers, you give them a proven solution to major system and appliance breakdowns. If a covered system or appliance breaks down, Buyers have a cost-effective way to address it. That means fewer liabilities for you.
Additionally, 2-10 HBW provides Service Agreement Advisement Documents for agents. This can help you have the important conservation about home warranties and provide documentation should your Buyers choose to forgo a home warranty and then something breaks down.
While a home warranty is not a substitute for an inspection, it can help protect you from liabilities if Buyers choose to waive one.
It can protect AND bolster your reputation
Buyers agents have the difficult task of telling their clients “no” in this market. “No, you shouldn’t waive an inspection.” “No, I don’t recommend bidding $50,000 over ask, even though you love this house.” These discussions can be tough, but they’re essential to preserving your reputation.
Likewise, offering a home warranty can protect and bolster your reputation.
Offering a home warranty for your Buyers protects them when they’re most financially vulnerable. And it does so during AND after the transaction. When you protect your clients beyond the transaction, it can protect your reputation as an agent who’s looking out for them even after the sale. That can go a long way for referral business.
Additionally, recall that many Sellers are looking for “clean” deals, those with the fewest contingencies. When you come to the table with a home warranty, you’re telling those Sellers two things.
- My Buyer doesn’t expect you to update or replace systems and appliances. That means more money in your pocket and less time upgrading things you’ll never use.
- My Buyer can offer to cover your home with Seller coverage through closing at no cost to you. So, if something major does break down while you’re on the market, it won’t derail the sale.
More money, less work, and a solution for unexpected breakdowns that can stall a sale. That can make a huge impression on your Buyers, framing you as someone who knows how to get a deal done AND mitigate home ownership risks in the long run.
Cover your assets and your reputation with 2-10 HBW
A home warranty has never been more valuable to you and your Buyers. It can protect you against liabilities that rear their heads in hot Seller’s markets. It can protect your reputation by giving your Buyers a solution to major breakdowns when they’re most financially vulnerable. And it can bolster your reputation as an agent who can negotiate with Sellers while providing long-term solutions for Buyers.
As you navigate this Seller’s market with your Buyers, let 2-10 HBW be your partner in protection—for yourself and your clients.
2-10 HBW offers comprehensive systems and appliances home warranties to help protect your clients from unexpected repair and replacement costs. Contact us to learn more.