As a real estate agent, you already know a home warranty can be a thoughtful closing gift for a client. But did you also know it adds protection to your real estate business? Indeed, a home warranty offers extra protection to you and your business, particularly in a low inventory housing market.
Today’s over-heated housing market forces many buyers to exhaust their savings to buy a home. Recent studies show that 44% of buyers are unable to deal with a home repair that is $1000 or more.
In addition to leveraging their savings, many buyers forego a home inspection to get their offer accepted. This often results in costly, unexpected repairs after closing. The first one they will turn to for solutions will be you, their real estate agent. In fact, another study revealed that 32% of buyers regret their home purchase. After buying in today’s low inventory housing market, buyers reported feeling overwhelmed by unexpected maintenance issues. Putting a home warranty in place at closing helps with future maintenance. You can protect your buyers when it comes to home maintenance. Increase your reputation and word-of-mouth referrals by choosing a home warranty for your buyers.
32% of Home Buyers have regrets when it comes to unexpected home maintenance issues.
The last thing you want to worry about as a real estate agent is that you could be on the hook for repair bills after closing. Make sure a home warranty is in place so that you can reduce this risk. In a low inventory housing market, home warranties make happy homeowners. And happy homeowners make you happy.
In addition to the trend of buyers waiving inspections in an over-heated housing market, another new dynamic to consider is the remote worker. As the work-from-home movement has gained momentum, more stress than ever is being placed on a home’s systems and appliances. Protect your transaction and your closing by making sure a home warranty is in place at closing. By doing so, you give your buyers the valuable option of extending that home warranty indefinitely. As you know, if a buyer purchases a home without a home warranty, it’s impossible to get one later. Home warranties can only be added during the transaction and closing phase of the home purchasing process.
Home Warranties also benefit Sellers (and could help you get the listing):
And did you know home warranties also benefit sellers? Having a home warranty in place during the listing period protects your sellers from unexpected home maintenance expenses during the listing period. The warranty can then be easily transferred to the buyers at closing. A home warranty offers protection at every step of the transaction and also gives you a competitive edge for getting the listing. A low inventory housing market means there are fewer listings to be had. Many agents offer free staging as an extra incentive for gaining a new listing. The gift of a home warranty can offer a similar incentive and be just the thing to tilt a listing in your favor.
Remember: You can add a home warranty 30 days after closing.
Make sure your clients know they can purchase a home warranty on their own if it’s not included. And remember, you can always add a home warranty up to 30 days after closing.
A home warranty is a nominal expense that can reap abundant rewards.
A low inventory housing market presents many hurdles to both you and your buyers. Don’t let unexpected expenses after closing be one of them. Fidelity National Home Warranty is a Fortune 500® company that’s been around since 1974. A home warranty from Fidelity National Home Warranty is a nominal expense that can reap abundant rewards. We have numerous home warranty options available at great prices. Protect your clients and yourself in this hot housing market. Make sure your next deal includes a home warranty from Fidelity National Home Warranty.
For more information on ordering a home warranty, click here.
Check out our informative video on the importance of home warranties in a low inventory market: Click here.