Why should agents partner with a home warranty company?
There are 2 huge reasons why real estate agents should partner with a home warranty company for their clients.
- A home warranty plan protects Buyers’ budgets immediately after they make their down payment.
- A home warranty plan can differentiate a Seller’s home, making it more likely to sell more quickly.
Partnering with a home warranty company, like 2-10 Home Buyers Warranty (2-10 HBW), can also help you as an agent in 3 ways:
- Protects your transaction
- Speeds up your sales process
- Improves your clients’ home ownership experience
Here’s how the right home warranty company, 2-10 HBW, can help you attract more interest from prospects.
Benefits of offering a home warranty plan from 2-10 HBW
A home warranty plan gives your clients financial protection. This can differentiate you as an agent looking out for them beyond the sale. It covers the costs to repair or replace major systems and appliances when they break down from routine use. This includes air conditioning, plumbing systems and the refrigerator.
If you’re a listing agent, you can provide complimentary Seller coverage through 2-10 HBW, where allowed by law, for the listing period. This can protect Sellers from unexpected breakdowns that might delay a sale. When Sellers feel like their agent is protecting them, it builds trust.
If you’re a Buyer’s agent, providing a home warranty plan can improve their experience of home ownership. Many Buyers forget about maintenance costs when they buy a home. They’re often surprised by how high those costs can be. By partnering with 2-10 HBW, you can protect them and their budgets against many of these surprises. That goes a long way in building strong relationships.
How a home warranty plan differentiates a home and the agent
Many housing markets are extremely competitive, which can make it hard for you to differentiate your listings. One of the easiest ways to promote hard-to-sell homes is to include a home warranty plan. This is an especially useful strategy for older pre-owned homes.
Most Buyers want homes that don’t require extensive repairs. They also don’t want to have to spend more money after making a down payment to make their home livable. By partnering with a home warranty company like 2-10 HBW, you can protect them with a home warranty plan.
When Buyers learn how much repairing or replacing major systems and appliances can cost, it can scare them. But when they know that a warranty will cover major systems and appliances against breakdowns caused by routine wear and tear, it tends to increase their interest while reducing potential fears. You can include a home warranty plan in the real estate transaction and offer it as a motivator for first-time Buyers worried about additional or unexpected expenses.
And if you’re a Buyer’s agent, you can offer to purchase a home warranty for a client if the Seller doesn’t offer one. For Buyers who are straddling the fence, the gift of a home warranty can give them a much-needed push by providing extra security and peace of mind. It also differentiates you as an agent who’s willing to go the extra mile for their clients, which can lead to great relationships.
Things to consider when partnering with a home warranty company
Working with a home warranty company like 2-10 HBW can bring you a ton of benefits. However, there are some things you should consider when partnering with a home warranty company.
Warranty referrals cannot be compensated. In the past, home warranty companies could compensate agents who sold Home Warranty Service Agreements on their behalf. That’s not the case anymore. With the passage of the Real Estate Settlement Procedures Act (RESPA), this practice became illegal.
While you may refer clients to home warranty companies, you cannot receive a fee from the home warranty company for doing so. For instance, you cannot charge fees for marketing a home warranty, accepting an application for a home warranty or furnishing brochures and other information about a warranty.
Real estate professionals can accept compensation for some things. Many home warranty companies ask agents to obtain serial numbers of systems and appliances, and document any pre-existing conditions in a property that might affect coverage. (2-10 HBW does not require this.) An agent may charge for these activities, as long as the fee reasonably reflects the value of the work.
Agents must make a full disclosure. If you are marketing a home warranty to a Buyer or Seller, you must fully disclose the nature of your professional relationship to the warranty company. You should also make it clear that the Buyer or Seller is free to purchase a home warranty from a different vendor themselves or go without any warranty at all.
Why partner with a home warranty company?
Partnering with a home warranty company like 2-10 HBW can protect your transaction, speed up your sales process and improve the home ownership experience for your clients. This can mean more money and more referrals more quickly for you.
If you’re an agent for a Buyer, a home warranty can reduce the cost of home ownership at the most crucial time—immediately after the down payment. That protection can be priceless to Buyers and improve their experience of home ownership. And if you choose to offer it as a gift, it can differentiate you as an agent worthy of referrals.
If you’re an agent for a Seller, a home warranty can differentiate the home in a competitive market. If something qualified breaks down during the listing period, the Seller (and future Buyer) gets peace of mind that they won’t have to pay huge costs to address it. That’s a big reason why Sellers offer home warranties more than any other incentive around.
Whether you’re listing a property for the first time or struggling to sell a home that lacks curb appeal, partnering with a home warranty company like 2-10 HBW can make all the difference. Let us help you maximize your potential with our comprehensive home warranty.
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.