Homebuilders face a myriad of risks throughout the process of constructing a house. Once the home is built and ready to sell, there are still potential risks to consider. Find out some of the top reasons to invest in a homebuilder’s warranty to reduce potentials costs until the project’s conclusion.
Attract Qualified Buyers
One of the most significant reasons to get a homebuilder’s warranty is attracting qualified buyers. Many buyers prefer to purchase a new home with a warranty to give them peace of mind about the purchase. Getting warranties for house builders helps sell properties faster because buyers feel confident about making an offer and are prepared to move forward.
Often home buyers are advised to search for homes with warranties from the builder. Home buyers want to know the house’s materials and workmanship are covered if any problems arise after the deal closes. Typically, the terms of the warranty are outlined in a contract, and home buyers must make claims within a specified time.
Avoid Costly Legal Battles
Top builders face unexpected issues during construction that could lead to problems in the future. In some instances, weather conditions and other factors play a role in constructing construction projects’ overall integrity. As a result, inevitable issues arise, and homeowners expect the house to function properly.
With a warranty, these problems are fixed quickly and at minimal expense to everyone involved. Without a warranty, the homeowners may decide to file a lawsuit against the builder. The cost of insurance is far less than hiring lawyers and facing months or years of battling in court.
Protect Your Reputation
Builders rely on word-of-mouth to build their reputations and businesses. A builder’s reputation helps earn new projects and make existing ones marketable. When a builder is deemed unreliable, it has a negative impact on current and future projects.
Investing in a warranty helps builders maintain positive relationships with people who purchased their homes. When buyers get satisfaction, they talk about it. Offering them a warranty helps builders keep customers happy, and everyone is sure to hear about it.
Time to Focus on Business Matters
Builders need to constantly generate business to keep everyone employed and stay profitable, especially during challenging economic times. Fielding customers’ complaints can become a full-time job. The owners and staff could spend much of their time resolving customer complaints rather than working on new projects.
With a warranty, the homeowners have the resources to get the problems fixed with little or no contact with the builders. The process is simpler for homeowners and gives builders time to focus on their companies rather than trying to resolve customer complaints.
The cost of resolving customer complaints becomes steep for building companies. Staff needs to answer the phone and emails to resolve customer complaints. When a customer remains unhappy, management needs to step in to provide some solution. Fixing the problem could also add up to extra costs a builder did not factor into the project.
Spending the money on a warranty today saves money tomorrow. Builders know problems related to basic house systems and components are covered without their intervention. Plus, homeowners get fast results that make them feel good about the house they chose.
Step Up to the Competition
In a competitive marketplace such as homebuilding, staying ahead of the curve is crucial to remain profitable. Builders must find ways to stand out from the competitors to provide something more. One way to offer something extra is a builder’s warranty.
Homeowners expect builders to provide what they need to move into a house and start living the lifestyle they imagined. When systems fail, it makes buyers dissatisfied with the builder and the overall process. A builder who provides the reassurance that everything is covered once the buyers move in stand head and shoulders above the rest.
When it comes to marketing, the goal is to answer a typical consumer’s questions in a way that makes sense. When people buy a house, they want to know they can live there without headaches in the future. Consumers searching for new construction don’t want a house that needs repairs.
Offering a warranty is an excellent marketing tool. Add the offer to all correspondence, websites, social media posts, and business promotional materials. When consumers know they get a warranty with a new home, they are more likely to take action to see it and make an offer.
Educate the Consumer
Many people don’t know much about household systems and repairs, especially if they are first-time home buyers. Providing a builder’s warranty is an excellent way to educate consumers about homeownership. A warranty explains systems, materials, and components in the house to help buyers learn how it all works.
Plus, homeowners have access to a network of professionals who can help them after moving into the house. Moving into a home can be challenging, and it helps to know there is assistance if something goes wrong along the way. Builders who teach consumers about homes will be remembered when ready to buy their next new house.
Pride in Business Operations
A company that runs smoothly means everyone has more time for leisure. Management feels proud when issues are resolved immediately to the satisfaction of consumers. When clients are happy, the team feels good about working for the company.
Investing in warranties for homes helps ensure the company runs well, even if problems arrive. Professionals are on-call to handle the issues, which makes the builder look good.
House builder’s warranties are a solid investment in business success. As the building industry gets increasingly competitive, it is crucial to have an edge. Investing in warranties helps attract the most qualified buyers who are ready to take action. Having access to resolutions as problems arise will make the builder look good and support their valued customers. When builders provide everything buyers want and need, they get more business from positive word-of-mouth. Happy clients help boost a builder’s reputation.