Buyers were put in challenging positions during the extreme seller’s market of 2021 and 2022. Homes were listed at inflated—sometimes outrageous—prices with contingencies waived.
Some home buyers are now experiencing a little “buyer’s remorse”—but on a large purchase with no return policy. According to the research done by Victor Insurance Managers, this “buyer’s remorse”, along with other factors, is resulting in an increased number of lawsuits.
In their study, Victor Insurance Managers saw a whopping 9% increase in E&O lawsuits and a 13% increase in damages (averaging $39,000.00). This is concerning to agents and brokers nationwide: one lawsuit can damage a real estate business’ reputation.
While agents and brokers can’t control how clients feel about their home after they’ve settled in, agents can help prevent lawsuits from happening in the first place and protect themselves, their broker, and their seller. Here’s how:
95% of claims stem from disclosure form errors or omissions. Sellers Shield created a disclosure process that empowers sellers to fill forms out more accurately and completely. This reduces agent liability and prevents lawsuits from happening in the first place:
Even if the sale is executed perfectly, the buyer can still bring a legal claim against the seller. Unfortunately, sellers are the only ones in home sale transactions without legal protection. And when the seller is sued, the agent and broker are almost always drawn in.
Through Home Sale Legal Protection™ by Sellers Shield, 94% of client disputes were resolved before they escalated to the mediation or lawsuit stage. This means agents and brokers were never at risk of being drawn in because the disputes were already taken care of.
This protection allows sellers to contact Sellers Shield at the first sign of trouble:
The last two years of real estate have been unprecedented. In the wake of those record-setting years will be some unprecedented side effects—like an increased number of mediations and lawsuits.
Agents and brokers can’t control the ebbs and flows of the real estate market, but they can manage their risk and both support and protect their sellers with the solutions Sellers Shield offers.