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Real Estate Fight Club

Apr 2020

Episode 28: Should You Suggest That Your Clients Use a Home Warranty?

April 8, 2020

In Episode 28 of the Toe-2-Toe Podcast, hosts Jenn Murtland and Monica Weakley duke it out over whether you should suggest that your clients use a home warranty. Hear why Monica is very careful about never pushing in one direction and why Jenn thinks the home warranty should be used as a negotiation tool. 

Episode Highlights: 

  • Should you suggest that your clients use a home warranty?
  • Monica presents the home warranty as an option, presenting the pros and cons.
  • On the listing side, Monica says that if they decide to offer it you're covered during the listing but if the buyer doesn't happen to ask you've thrown away $500.
  • Jenn says the average home in Ohio goes quickly and for those homes, she recommends warranties.
  • She uses the warranty as a negotiation tool.
  • Jenn says that if something does come up during inspection and they don't have someone that can do the work, the warranty can come into play.
  • Monica asserts that once you fill out that form to have them covered during the listing process then you are obligated if the house sells to pay for the warranty.
  • Monica believes you have to pay for the warranty once you've signed up.
  • Jenn points out that with newer homes, some warranties will already be in place.
  • Jenn thinks her vendors are often better than the vendors associated with the warranty.
  • Monica points out that some people will rave about how great a warranty is and others will trash it, having used the same product and company. This can be tricky.
  • Jenn provides an example of how she used a home warranty with a condo to manage issues and repairs.
  • Whether a warranty makes sense depends on the house and the client.
  • Monica feels that agents should have good familiarity with the home warranty product they’re offering. 
  • Jenn disagrees and says that the home warranty company can provide that education. 
  • Jenn says most buyers will ask for a home warranty.
  • Monica and Jenn compare their different scripts for managing questions from clients.
  • Monica ultimately recommends presenting a home warranty as a neutral option.
  • The last thing you want to do is recommend it in some way and be wrong.
  • Jenn reminds us to use the home warranty as a negotiation tool. 

3 Key Points:

  1. Home warranties can be offered to clients as an option. You may wish to be careful about pushing them one way or another.
  2. Home warranties will make sense for some homes and some clients, but not others.
  3. Home warranties can be used in the negotiation process as a tool. 

Resources Mentioned: