The Four Pillars of Risk Management for Top Real Estate Professionals in Hot Markets — RISMedia

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Even when you think you’ve done everything right, things can still go wrong. In this frenetic market, everything is moving faster than normal. Despite your best efforts, this can open you up to complaints and lawsuits, which can damage your reputation and your income. Making sure you have errors and omissions insurance is a solid strategy for brokers and agents to mitigate these risks.

However, positioning yourself quickly to deal with the threat of complaints and litigation is key, as most agents want to avoid these issues rather than fall back on errors and omissions insurance. Even with errors and omissions insurance, you will still have to run the gauntlet of wasted time, resources, and the strength of your reputation.

Following these “4 Pillars of Risk Management” can help position you to reduce risk:

1. Use real estate contracts approved by the state
2. Get accurate disclosure (in states where applicable)
3. Still Recommend a home inspection or file waiver
4. Include a home warranty service contract

How can a home warranty service contract help mitigate your risk?

In a market where sellers may be unwilling to participate in inspections, a home warranty service contract can protect you in the following ways:

Provides protection. If a covered item fails after closing, your buyers have a solution. Without an in-home warranty service agreement, they may expect you to fix the problem.

Makes your offer stand out. With a full, detailed home inspection and free seller’s coverage (where permitted by law) that converts to buyer’s coverage, you can give your buyers peace of mind that they can have budget protection against failures. Plus, your salespeople will also know they’re covered by an industry-leading HBW 2-10 service agreement.

Protect your reputation. Outages can be a huge burden on your customers. With a home warranty service contract, you can show them your dedication to home ownership, which could protect your reputation.

Helps you move on to the next offer. Protecting your buyers against breakdowns when they need it most brings added value. This could lead to fewer complaints, smoother relationships, and more referrals.

Help protect your buyers from costly and frustrating breakdowns – and yourself from complaints that could turn into E&O claims – while making your offerings stand out with a 2-10 HBW in-home warranty service contract.

A 2-10 Home Buyers Warranty (2-10 HBW) home warranty service contract, along with proper disclosure and inspection, can be a powerful risk mitigation strategy. To learn more, visit www.2-10.com/courtiers-agents.

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