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FSBOs...Homeowners insurance won't pay for it...

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Mortgage and Lending with Your Financial Coach

Is this very well known to FSBOs? If you are showing your home to a potential buyer, and they pick up a few of you belongings or jewelry on the way out the door, your out of luck...too bad, so sorry Charlie, bye, bye....

As a Mortgage guy, I get calls from people that are selling their home themselves. I tell them that they should give consumers my card and have them get pre approved first before they allow a stranger into there home, that may not even be able to afford it, and may just be scoping it out to rob them. The next question I get is, "how come it's covered if I use a Realtor". So then I explain that the Realtor has different insurance to cover that.

Most of the time then they do call a Realtor, and I have seen new signs on the lawn, and the old FSBO taken down....but no thanks from the client or no referral from the new listing agent.

How would I get this accross so that I at least get a thank you or a referral. I know of 2 homes I helped and the realtor referred them to there favorite lender instead.

 

Pam Winterbauer
Pam Winterbauer Real Estate - San Ramon, CA
"Providing Blue Ribbon Service"
Chuck.....do I understand you to say if a homeowner's possessions are stolen while a FSBO it is not covered?  However, if it is listed with a Realtor their insurance will cover the items stolen?
May 03, 2008 11:36 AM
Chuck Christensen
Your Financial Coach - Bellingham, WA
Homeowners insurance will not cover them if they invited them into the home. It only covers against theft or loss, but has to be broken into, so that their is a crime that was commited and a crime report filed with the local police. That way the insurance company feels that they might get money or items returned if caught. However, if a Realtor is showing the home, it is not the homeowners fault, so the homeowners insurance could cover that. But they will not usually cover it until after the Realtors E & O pays first. The homeowners and E & O will fight it out for awhile, but will usually work with each other and each pay half.
May 05, 2008 06:49 AM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS
Chuck, that is Chicken ____ that you referred to a Realtor who did not use your services.  I think I would ask them why?  Or flatten their tires.  :)
May 05, 2008 02:59 PM
Chuck Christensen
Your Financial Coach - Bellingham, WA
How did you know what I was thinking? I was also considering changing the spark plug wires...That would leave a more lasting impression....hehehe
May 06, 2008 08:48 AM