Even when you think you’ve done everything right, things can still go wrong. In this breakneck market, everything moves faster than normal. Despite your best efforts, this can open you up to complaints and lawsuits, which can hurt your reputation and income. Making sure you have E&O insurance is strong strategy for brokers and agents to mitigate these risks.
However, positioning yourself to address the threat of complaints and litigation early is key, as most agents want to avoid these issues outright rather than falling back on E&O insurance. Even with E&O insurance, you’d still need to run the gauntlet of lost time, resources, and reputational strength.
Following these “4 Pillars of Risk Management” can help position yourself to reduce risks:
1. Use state-approved real estate contracts
2. Obtain accurate disclosure (in states where applicable)
3. Always Recommend a home inspection or file away the waiver
4. Include a Home Warranty Service Agreement
How can a Home Warranty Service Agreement help mitigate your risk?
In a market where sellers may not be willing to participate in inspections, a Home Warranty Service Agreement can protect you in the following ways:
Provides protection. If a covered Item breaks down after closing, your buyers have a solution. Without a home warranty service agreement, they may expect you to rectify the problem.
Makes your offer stand out. With a thorough and detailed home inspection and complimentary (where allowed by law) seller coverage that converts to buyer coverage, you can provide your buyers peace of mind that they can have budgetary protection against breakdowns. Plus, your sellers will also know that they’re covered by an industry-leading 2-10 HBW Service Agreement.
Protects your reputation. Breakdowns can be a huge burden for your clients. With a home warranty service agreement, you can show them your dedication to happy home ownership, which could protect your reputation.
Helps you get to the next deal. Protecting your buyers against breakdowns when they need it most provides added value. That could lead to fewer complaints, smoother relationships and more referrals.
Help protect your buyers against expensive and frustrating breakdowns—and yourself against complaints that could turn into E&O claims—while making your offers stand out with a Home Warranty Service Agreement from 2-10 HBW.
A Home Warranty Service Agreement from 2-10 Home Buyers Warranty (2-10 HBW), along with a proper disclosure and inspection, can be a powerful risk-mitigation strategy. To learn more, visit www.2-10.com/broker-agents.
