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

Three Benefits

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

Personally, I love them.

That’s because listing agents know — even if their clients don’t — that a home warranty can help smooth over inspection issues, and make a dated home more attractive to first-time home Buyers, especially at lower price points.

They also make eminent financial sense.

Put it this way: there aren’t many inspection issues that are resolved for less than $500 — the cost of a typical one year policy.

Post-Closing Benefit

Of course, once the deal has concluded, a home warranty can also help insulate the Seller from a Buyer who may be irate about any unexpected, post-closing home repairs.

How do listing agents know there’s been a problem (or several) at the now-sold house?

The home warranty company typically notifies them — but not the blissfully ignorant Seller** — of any Buyer claims.

Over the years, I’ve received multiple such notices, easily totaling > $25k on homes I’ve represented . . .

**Unless the agent chooses to tell them.

Especially if my selling clients are older and wore their “pride of ownership” on their sleeve, I usually don’t.

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

See also, “Selling Home Warranties . . . to Whom Exactly?“; “Treasured By Long-Time Owner”; and “Home Warranty Coverage Confusion.”



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