Home Price Protection Goes Mainstream

Price protection products are beginning to catch on, bringing a new comfort level to skittish home buyers.

(Boonton, NJ, November 3, 2011) — Home buyers have been sitting on the fence for years now, paralyzed by fear about their financial prospects and worried that home prices will fall even lower.

But some in the industry think that insurance-like home price protection policies will provide peace of mind to skittish buyers. The concept has been tested in Syracuse, NY, and has been championed by Yale economist Robert Shiller, but it has yet to really catch on. In the most ambitious attempt at selling insurance against falling home prices, Equity Lock Solutions of Denver began selling protection in May.

Chris Brown, broker-owner of the 130-agent RE/MAX Connection in Marlton, NJ, tells Real Estate Broker's Insider that it's a crucial way to make buyers feel confident about buying homes again.

It's a complicated enough product that it'll take time to catch on, Brown acknowledges. "You're presenting a brand-new concept," he adds. "Education is key."

Details on the EquityLock product and Brown's experiences are in the November issue of Real Estate Broker's Insider.

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