Should you Take Your Realtor's Recommendations?

Should you Take Your Realtor's Recommendations?

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Buying a home isn’t as simple as giving the sellers a check and then calling the house your home. Before you can purchase the home, there are a number of steps you have to take to get there. (If you’re wondering what those are, check out this article on the true cost of the home.) With each of those steps, you’ll probably have to work with another company that specializes in that element of closing on a home. Sometimes your real estate agent will give you a list of companies they recommend, like the best home warranty companies, best mortgage lenders or favorite title insurance. Of course, you don’t have to use these recommendations, but let’s take a closer look at why you might want to!

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Should you Take your Realtor's Recommendations of the Best Home Warranty Companies?

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Won't my Realtor Get a "Kickback"?

The first thing that many homeowners think when their real estate agent hands them a list of their favorite mortgage lenders, best home warranty companies, and top title insurance companies is: “why are they recommending them to me?” Many homeowners mistakenly think that by their real estate agent getting these professionals some business, the real estate agent gets some sort of benefit. 

Not only is this untrue of most real estate agents, it’s illegal.

One of the laws that governs the real estate industry is the Real Estate Settlement Procedures Act, which specifically states that real estate agents cannot receive any benefits as a thank you from vendors for bringing them business. So if your Realtor hands you a list of the best home warranty companies, those companies will give nothing back to your Realtor for bringing them business. The real estate agent isn’t getting anything from giving you a list of recommended vendors except to have you work with a trusted individual.

Why do real estate agents recommend the people they do?

Most real estate agents get business through referrals. They want you to have a smooth experience through the home buying process so that you’re more likely to recommend them to your family and friends. If you use an outside vendor and have a horrible time, it wouldn’t look good for them, and you’d be less likely to recommend them! To ensure a smooth closing process, great real estate agents will recommend their best home warranty companies, top title companies and other top vendors. It’s all to benefit you!

Cory McCall said that he gives his clients a list of recommended vendors because it’s easier to head off problems before they start. If he knows and trusts these professionals, he knows he’ll get great service from them.

“The people on my (recommended) list are trusted professionals,” McCall said. “Anytime I have a deal going sideways it has to do with a professional I have not dealt with before… it [makes] my job harder, and puts a lot of stress on worried clients.”

By creating a list of their preferred inspectors, best home warranty companies and more, real estate agents end up making the closing process less stressful for clients.

Becky Laird Gluff said that the reason she gives recommendations are for the buyer’s benefit. 

“We've closed on multiple homes and have experienced how good transactions have gone and how bad ones have gone,” Gluff said. “We are only recommending good ones for their benefit and to help the buyer and seller get to closing effectively.”

Your Realtor has worked with many different industry professionals, and they know who gives the best service, and who doesn’t. They know the best home warranty companies in the industry.

Kris Dyer said he speaks candidly with his clients and explains that his list is something that has taken him time and effort to put together.

“They will get great service and have better success at closing a deal smoothly and efficiently with my recommendations,” Dyer said. “If things do end up getting tricky no one will work harder for them than the people I already have long-standing, professional relationships with.”

This loyalty can create higher standards for professionals. Brian Icenhower explained that Realtors will continue to refer these trusted professionals unless they start getting bad service. 

“Agents can hold their preferred vendors accountable to high levels of customer service and reasonable prices since the vendors want to continue to be referred by the agent to future clients,” Icenhower said.

Of course, this doesn’t mean to take the list of recommended individuals and choose the first one off of the “best home warranty companies” list. Feel free to shop around – your real estate agent wants you to – and find the company that you feel most comfortable with and fits with you. If you think that there is a better fit somewhere else, your real estate agent will support you. Their goal is to give you the best (and smoothest) experience possible.

If you do want to learn more about the best home warranty companies in your area, take a look at Landmark has been listed as the best regional company out of many of the best home warranty companies from two years in a row. Purchasing a home warranty from the best home warranty companies can save you thousands on home repairs.


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