Why real estate agents should partner with home warranty companies
A good home warranty can be a valuable selling point that sets a home apart. But what makes a good home warranty partner? Here’s how working with 2-10 Home Buyers Warranty (2-10 HBW) can help real estate agents attract more interest from prospective Buyers.
Security, value, and peace of mind
As a real estate agent, you know how hard it can be to differentiate your properties in competitive markets. One of the easiest ways to promote hard-to-sell homes is to include a systems and appliances home warranty. In fact, Sellers offer home warranties as an incentive more than any other incentive, including cash considerations.
Most Buyers want homes that don’t require a lot of unexpected repairs. When Buyers learn about everything a home warranty can cover (e.g., air conditioner, major appliances), they tend to want one. A home warranty can increase interest among Buyers while relieving fears about what to do when something breaks down.
For Buyers who are on the fence about a home, a home warranty can give them a much-needed push by providing extra security and peace of mind. Best of all, you can provide a home warranty as a gift, which makes for happy homeowners. Happy homeowners can quickly turn into referrals!
Things to consider about home warranties
Years ago, home warranty companies would compensate real estate professionals whenever they acquired a warranty on behalf of a client. With the passage of the Real Estate Settlement Procedures Act (RESPA), this practice became illegal. To adhere to modern regulations, real estate professionals should understand a few important facts.
Warranty referrals cannot be compensated
While brokers are not prohibited from referring clients to home warranty companies, they cannot receive a fee for doing so. For instance, a real estate agent cannot charge fees for marketing a home warranty, accepting an application for one, 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. An agent can charge for these activities if the fee reasonably reflects the value of the work. There are a few other things that could bring you compensation from a home warranty company. However, they must be necessary and distinct from other required real estate duties, according to the National Association of Realtors.
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 or choose to go without one at all.
Whether you’re listing a property for the first time or struggling to sell a home that lacks curb appeal, a good warranty can make all the difference. Depending on the state, it’s usually very easy for agent purchasers to seamlessly transfer a warranty into a Buyer’s name. If you’re looking for a way to make your homes stand out, consider becoming a home warranty partner with 2-10 HBW today!
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.
