When it comes to the closing table, are your sellers committed, as agreed, to the purchase of the home warranty?
Many home sellers see the benefit of putting a warranty on their home because of the competitive advantage it gives their property. However, it’s important to obtain legal confirmation from the seller to purchase the warranty at closing. This can help ensure that you, the real estate professional, don’t end up paying for the warranty out-of-pocket.
How can this affect your business?
As a real estate professional, a great portion of your business can come from referrals. Whether it’s a referral from a homeowner or a buyer, you want to ensure that all parties involved are happy with your services. With that said, misleading a buyer about who is paying for the home warranty at closing could affect their overall perception of how you do business.
Stating in the listing that a home warranty is included with the purchase of the home on a listing service does not bind the home seller to purchase the home warranty. A home seller could offer the home warranty when the home sells at the full listing price, but once the price is lowered during negotiations, the seller could decide not to offer the home warranty. Also, most listing services have clauses that state “Information deemed correct, but not guaranteed.”
How do you commit the seller?
Including a statement of warranty coverage that outlines the seller’s commitment to purchase the home warranty at closing in the real estate contract can help clear any issues that might arise. This should save you from having to step up for the home seller and pay for the coverage.