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:
- Home warranties can be offered to clients as an option. You may wish to be careful about pushing them one way or another.
- Home warranties will make sense for some homes and some clients, but not others.
- Home warranties can be used in the negotiation process as a tool.
Resources Mentioned:
- Jenn Murtland LinkedIn | Facebook
- Monica Weakley LinkedIn | Facebook
- Toe 2 Toe Podcast Facebook Page