Why would a listing agent offer a home warranty?
Sellers find themselves in a unique situation. They want to offload the most valuable asset they have as quickly and for as much money as possible. Throughout that process, they’ll likely have to deal with inspections, appraisals and negotiations from potential Buyers. If something goes wrong with a major system or appliance while the house is on the market, it can cause closing delays, price reductions or prevent a sale from occurring at all. Savvy listing agents know these risks. They also know that a Home Warranty Service Agreement from 2-10 Home Buyers Warranty (2-10 HBW) is a powerful weapon against these risks. Let’s look at some of the details behind why a listing agent would offer a home warranty.
What are the benefits of offering a home warranty for listing agents?
There are 3 major benefits to listing agents when they offer a 2-10 HBW systems and appliances home warranty.
- Protects their transaction
- Speeds up the sales process
- Improves the home ownership experience for their clients
Protects their transaction when they need it most
Protecting every client’s most important transaction is crucial to listing agent success. Systems and appliances that fail during a listing can cause dire consequences. Breakdowns can derail showings. They can decrease Buyer confidence in the home. A sudden breakdown without a solution can even prevent closings.
Listing agents who provide a systems and appliances home warranty mitigate these risks. It can cover major systems (e.g., an HVAC system) and appliances (e.g., refrigerator) if they fail during the listing period. This makes it more likely that the transaction will finish smoothly because there’s a potential solution for unexpected breakdowns.
Speeds up the sales process
Listing agents who provide a home warranty speed up their sales process. Homes with a home warranty are more attractive to potential Buyers. They provide protection that gives the Buyer more confidence and peace of mind with their purchase. Because home warranties can help prevent closing delays, the process moves more swiftly. And houses with a home warranty tend to give hesitant Buyers a push toward purchasing. This keeps the Seller’s interests top of mind during a closing.
Improves the home ownership experience for your clients
Most importantly, providing a home warranty can improve the home ownership experience for your clients. It protects the budgets of the listing agent’s clients. If a major system or appliance breaks down during the listing period, Seller coverage can greatly reduce out-of-pocket costs. This helps Sellers keep as much money in their pocket as possible throughout the sales process.
Providing a home warranty also shows that the listing agent is looking out for their clients. When a Seller’s house sells quicker and for more money than they expected thanks to having a home warranty, they’re more likely to recommend the agent who provided it. All of these factors can differentiate listing agents in competitive markets.
Who pays for a home warranty, and what does it cover?
Where allowed by law, Seller coverage from 2-10 HBW is complimentary throughout the home’s listing period. (Except in Florida, where it’s just $60.) If the Seller chooses additional protection for their air conditioner and heat pump, the option costs $50. The home warranty covers the home’s systems (e.g., an HVAC system) and appliances (e.g., refrigerator) while it’s on the market.
Plus, if the Seller already has a Service Agreement in place prior to the listing period, they may transfer the remainder of coverage to the Buyer at no cost to the Buyer. So, say a Seller signed a Service Agreement on January 1. Then, the Seller sold their house on May 1. The Seller can transfer the remaining coverage to the Buyer at no cost, and the Buyer will be covered by that Service Agreement until January 1 of the next year.
If the Seller does not have an existing home warranty in place (i.e., they only have Seller coverage provided by their real estate agent for the listing period), then the Buyer’s agent or the Buyers themselves may choose to purchase coverage.
Do agents make a commission on a home warranty?
Agents do not make a commission on a home warranty. However, agents may choose to include a home warranty to decrease the number of days the home is on the market.
Listing agents who provide a 2-10 HBW home warranty do themselves and their clients a great service. They protect the most valuable asset at the time their clients need protection most. They also position themselves to have greater success than agents who don’t provide that protection.
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.