Is the Title Company Home Warranty Really Free?

Title Company Home WarrantyI would say at least 3 -4 times a month I get this call or email from a Realtor: “Wade…we really want to use Stewart Title on this transaction, but this other Title Company says that if we go with them, they will give my buyer a free home warranty at closing. Can you guys do that?”  That is when I have to drop the news, that the Title Company Home Warranty isn’t really free. Ever hear the phrase…”no such thing as a free lunch?”  Think along those lines. You might be thinking that this doesn’t happen in your area of country, and you are probably right.  It does happen in the Northern Virginia/Washington DC area…all the time.  There are several things about this marketing tactic to “earn business” that needs to be explained.  Not only to real estate agents, but also the buyers and sellers on the transaction.  It affects them as well.