Are You Still Working For Free?
Thursday, October 05, 2006 - By David Sobel

 Did you sell that listing yet? Are you getting any showing requests at all? My presumption would be probably not, if the stats from the National Association of Realtors are correct. They stated on September 25^th that existing home sales stabilized at a substantial pace in August, while home prices showed an anticipated decline. It’s a big struggle to attract interest in this kind of market, but there is a way.

Hopefully your sellers are starting to become more realistic about the current market conditions. Some may not, because for years they have heard about the real estate boom, and they may not want to believe that it is over. Homes which are competitively priced or priced below market value are the ones that are selling. Those listings with unrealistic prices, as I am sure you are aware, are not moving at all. Your seller remains hopeful to get their price, while you keep working for them for free. How much longer can you let this continue?

It is time to get creative without busting your marketing budget. It is time to offer incentives to the buyer to get some attraction to your listing. Your house needs to stand out from all of the hundreds of listings on the market and you need to give the buyer piece of mind when choosing your listing over the rest. One way to accomplish this is to offer a 13 Month Home Warranty on the listing.

Does your listing have not-so-new appliances and major mechanical systems? If so, then a home warranty is a perfect incentive. Most sellers cannot afford to buy new appliances, just for the purpose of selling the house and new buyers have put all of their available cash into the down payment and closing costs that it isn’t in the cards to buy anything new for a while. A warranty will cover the major mechanical systems and appliances plus any options such as pool/spa, detached garages, in-law units, and much more. You can protect the home during the listing period and give a gift to the buyer that keeps on giving all year after they close. The warranty during the listing period could eliminate downward price negotiations during the attorney approval period and any last-minute discounting or inspection arguments at the closing table. It will also reduce your liability and the seller’s liability after close.

Do your homework when choosing what home warranty company to use. Are the prices competitive and are there a couple program options to choose from? Who covers the most items? Do they offer you, the real estate professional incentives as well such as free marketing? Do they offer advertising reimbursements? Choosing the right home warranty company is not just important for your clients, it is just as important for you as well. Soon, you might just be able to stop working for free!