Listing agents (representing home sellers) are big fans of home warranties.
Personally, I love them.
Test your knowledge of residential real estate today, and see if you know why:
A. Realtors don’t pay the premium (Sellers typically do).
B. Realtors get a commission for each home warranty policy they sell.
C. Listing agents know that a Seller-paid home warranty can help smooth over inspection issues, and — especially at lower price points — make a dated home more attractive to first-time home Buyers.
D. Unlike their agents, Sellers don’t get post-closing postcards informing them of claims that have been paid out as a result of something (or several things) breaking.
Correct answer: “C.” and “D.” (partial credit given for “A.” 🙂 ).
Smart Policy (Literally)
I don’t know about other listing agents, but I typically do not tell clients, after the closing, that something 
broke at their former home, but fortunately was covered by the home warranty they paid for (“Phew! How lucky!”).
But, I do take note.
Just today, in fact, I received two such postcards on the same home, which closed scarcely six weeks ago.
The first item was $460 for plumbing (photo, top); the second item was $509 for air conditioning.
P.S.: Edina Realty agents do NOT get financially compensated for recommending home warranties.
See also, “Selling Home Warranties . . . to Whom Exactly?“; and “Home Warranty Coverage Confusion.”
