I recently had a client, who was listing their home with me. A modest priced home, with just over 25 years under the belt. The roof was in good shape, having been replaced recently, and there were little known defects overall.
When we received our first offer, my client felt insulted that they should have to pay to warrant the home the buyers were trying to negotiate. The warranty was $475 per the contract offer and would be a 12 month warranty for this transaction.
My client, the seller, just could not bring his ego to the accepting point of the $475 one year warranty request, and although most of the other terms were agreeable, he simply insisted I counter back with no home warranty.
Well...to make a long drawn out earful from the buyer's agent's response short...the buyer was so taken aback by the seller rejecting to offer Good Faith in the home's one year projected quality, that he literally withdrew his offer. I think my mouth is still open from my shock.
Having been an agent for just over 14 years now, I feel I have seen a little something of most things, but then this particular buyer's response literally dropped my jaw. The other agent and myself even went as far as splitting the home warranty expense to appease both parties, but by this point - less than 24 hours- the buyer had a bad and leery taste in his mouth and moved on to another prospective property.
Now, what I do at FIRST listing appointment is simply explain to my seller the value of offering a one year home warranty on the real property. Not only does it sooth the buyer's concerns for homes older than 5-10 years, but it also just shows the seller's confidence I feel in what he is asking a stranger to purchase that may look great, but have serious issues just waiting to burst through the seams.
Include this warranty deduction when you complete a seller's net sheet for the seller...that way you will avoid any confusion or unwillingness on the seller's end and can focus on the bigger picture - the sale's price.
For all you newer agents, a seller's net sheet is found in Tempo or Fusion where you see the calculator icon at the top right of the tool bar. Good luck and good selling!
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