Listing agents (representing home sellers) are big fans of home warranties.
Personally, I love them.
That’s because listing agents know ” even if their clients don’t ” that a home warranty can help smooth over inspection issues (“Benefit #1”), and make a dated home more attractive to cash-strapped, first-time home Buyers — especially at lower price points (“Benefit #2″).
They also make eminent financial sense.
Put it this way: there aren’t many inspection issues that can be resolved for less than $500 ” the cost of a typical one year policy.
Of course, once the deal has concluded, a home warranty can also help insulate the Seller from a Buyer who may be irate about any unexpected, post-closing home repairs (“Benefit #3″).
How do listing agents know there’s been a problem (or several) at the now-sold house?
The home warranty company typically notifies them ” but not the blissfully ignorant Seller** ” of any Buyer claims.
Over the years, I’ve received multiple such notices, easily totaling > $25k, on homes I’ve represented . . .
**Unless the agent chooses to tell them.
Especially if the selling clients are older and wore their “pride of ownership” on their sleeve . . . I’d skip it.
P.S.: Edina Realty agents do NOT get financially compensated for recommending home warranties.