You probably already know there’s a large income gap between real estate agents in the United States. While the median earnings were around $62,990 in 2020, some real estate agents earned much more, while others made significantly less. The lowest 10% made around $25,000, while the highest 10% made over $112,000.
The question is, how do you end up in the top 10% of earners? While there are lots of ways to make money in real estate, one of the quickest, easiest ways to boost your income is with home warranties. A 2014 study determined that homes with warranties sell almost 11 days faster. Additionally, they often sell for more money. So, if you want to be a successful real estate agent, purchasing an American Home Shield home warranty as a buying incentive can help.
First, let’s go over why home warranties benefit agents and sellers. Then, you can consult with your clients about adding warranties to their properties.
Reassure Buyers With a Home Warranty
With large down payments and new mortgages, buyers often do not have the financial flexibility to handle repairs shortly after the purchase. Yet, at the same time, they realize that repairs or replacements might be necessary, even if the house just passed an inspection.
By purchasing a house with a home warranty, they’ll know that they’ll only have to pay the deductible or trade fee to repair or replace major appliances. This, in turn, provides peace of mind, improving the chances of finalizing deals.
Prevent Deals From Stagnating or Falling Apart
Far too many agents know that horrible feeling when a buyer submits repair requests after the funds are in escrow. Unfortunately, that simple request means the sale will take longer to complete, especially if the seller doesn’t have the money to make the repairs. In some cases, the sale might not happen at all due to the inability to make the requested repairs.
A home warranty can help avoid this problem. The seller can submit a claim to the warranty company for the repairs. The seller won’t have to spend much money out of pocket, and the repairs can get done quickly. Then, you can meet with the buyer and seller to finalize the transaction.
Keep this point in mind when discussing home warranties with sellers. They’ll appreciate that warranties can protect them when attempting to finalize the sale.
Get Homes to Market Faster With a Home Warranty
It’s not unusual for clients to have old appliances that need updating. While they could sell the property as-is, they normally don’t want to because they’ll lose so much money. Instead, they want to make the repairs, but they might have to save the money first. That means it could be months or even a year before you can list the property. That’s incredibly frustrating to deal with as an agent, but there is a solution.
Instead of waiting to save money, the seller can provide a warranty. Prospective buyers will be more willing to purchase homes with older air conditioners and other appliances if they’re covered by a warranty. So you can move to the listing stage much faster if the seller has a warranty.
Give Buyers an Incentive During Slow Markets
Unfortunately, markets slow down from time to time, meaning there are lots of homes for sale but few interested buyers. However, you can move houses during slow markets by including warranties.
Buyers often view home warranties as too valuable to miss so they might pick up the pace when a warranty is involved. If your clients are worried about the speed of the market, discuss how home warranties can help their properties sell quickly.
Get Referrals From Satisfied Customers
Buyers and sellers want the process to be as seamless and easy as possible. They’ll get just that when buying or selling houses with warranties. This helps you earn referrals after assisting clients. The more referrals you get, the more homes you can sell. That’s another fantastic reason to include warranties.
Discuss Home Warranties With Your Clients
These are just some of the reasons home warranties help agents sell houses. Discuss the benefits of warranties with sellers, including how it protects them from making expensive repairs before closing. If your client agrees, you can include a transferable warranty in the sale to incentivize buyers and sell the property quickly and boost your income
