Job loss protection

Taking clues from the auto industry, Allen Tate Realtors this month began offering job loss protection on some of its listings.

Sellers are hopeful this puts reluctant buyers over the edge.
“I’m being relocated. My company is going through a consolidation,“ Keith Pandres said, standing outside his south Charlotte home. “The house has been on the market a little less than eight weeks.“

Before he can move to Boston, he needs to get an offer.

“There hasn’t been a whole lot of movement in this neighborhood recently,“ according to Pandres.

To try and stand out from the 19 other homes for sale in the Cameron Wood Subdivision, he recently added job loss protection to his listing.

“I hope this is a way to overcome some of that resistance from the buyers and have them realize they can live in a gorgeous home with very little risk. From my standpoint, I just know there are a lot of people out there who want to buy homes but they are a little bit concerned about whether they are going to have a continued job. So they are being very cautious,“ he said.

Pat Riley is president and chief operating officer at Allen Tate Realtors in Charlotte.

On adding this protection, he said, “The auto industry has been doing this four or five months and we stepped back and said is there any application for this as it relates to the real estate industry?“

Riley found his answer with the non-profit Rainy Day Fund, which offers a product that works much like a home warranty.

The seller offers to buy job loss protection for $500. If, within 24 months after closing, the buyer loses his or her job and qualifies for unemployment, the program will pay up to $1,800 monthly for as long as six months. 

Riley says it’s working. “I know of five transactions that would not have happened without it,“ he said.

But he cautions this program alone won’t get your house sold.
“This is not a tool that takes the place of proper pricing and making the home dramatically memorable,“ said Riley. 

Pandres feels he has those bases covered. Now, he’s optimistic this little extra will help.

“We’re very hopeful that it is going to make a difference and that we’ll be able to sell this home within the next month,“ said Pandres.

Allen Tate Realtors began offering job loss protection earlier this month. Since then, Riley said it’s been added to more than 500 listings.