Why Home Warranties Are More Popular With Listing Agents Than Home Sellers

Listing agents (representing home sellers) are big fans of home warranties.

Test your knowledge of residential real estate today, and see if you know why:

A. Realtors don’t pay the premium (Sellers typically do).
B. Realtors get a commission for each home warranty policy they sell.
C. Listing agents know that a Seller-paid home warranty can help smooth over inspection issues, and — at lower price points especially — make a dated home more attractive to first-time home Buyers.
D. Unlike their agents, Sellers don’t get postcards after the closing informing them of claims that have been paid out as a result of something (or several things) breaking.

Correct answer:  all of the above, but especially “C.” and “D.”

Smart Policy (Literally)

I don’t know about other listing agents, but I typically do not call clients, after the closing, to let them know that something broke at their former home — but fortunately, was covered by the home warranty they paid for pursuant to the sale.

Just today, in fact, I received two such postcards on the same home, which closed scarcely six weeks ago.

The first item was $460 for plumbing; the second item was $509 for air conditioning.

P.S.: Edina Realty agents do NOT get financially compensated for recommending home warranties.

See also, “Selling Home Warranties . . . to Whom Exactly?“; and “Home Warranty Coverage Confusion.”



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