3 Strategies for Addressing Housing Uncertainty

3 Strategies for Addressing Housing Uncertainty

Since 2019, the new-home housing market has whipsawed. Interest rate swings, affordability issues, and inventory and labor shortages have created challenges for even the nimblest new-home builders. In the midst of yet another market shakeup—wherein new-home sales contracts have returned to pre-pandemic levels2-10 Home Buyers Warranty (2-10 HBW) has procured three strategies you can use to address housing uncertainty.


  • Builders should reassure buyers that they’re making the right decision.
  • Consider providing incentives to combat cancelation trends.
  • Provide the confidence buyers need with a 2-10 HBW Structural Warranty.

1. Give buyers confidence in their decisions

housing uncertainty confidence

More than ever, buyers need you to reassure them that they’re making the right decision in buying a new home.

In general, buyers have had their confidence in home buying shaken since March 2020. The rollercoaster rides of volatile stock markets and seesawing interest rates, along with the ever-present ghoul of home affordability challenges, have made it difficult for buyers to feel confident in their decision making.

One way to combat this problem is to refocus on the value you’re providing in your homes. And that value often needs to go beyond the monetary value of your homes, which is still important.

Most buyers understand that buying a house is a good investment. In the current market, what they’re looking for goes beyond “This is a good investment.”

According to Caitlyn Lai-Valenti, vice president of sales and marketing in Southern California for Brookfield Residential Properties, builders should consider training their sales teams to make “meaningful moments” a focus within the sales process.

In other words, focus on why buyers should buy from you. While what you sell (high-quality homes) is indeed important, buyers are looking for reassurance about why they’re buying from you.

For more information about strong ways to establish why buyers should buy from you, read our article about using your reputation to create more success.

2. Incentives may become more common for buyers

housing uncertainty incentive

During the pandemic, it was often a full sprint for buyers to see who could make the best offer. More recently, however, cancelations have been on the rise, primarily due to rising interest rates and the abovementioned decline in buyer confidence.

(It’s important to note that cancelation rates are still below historical averages. Nonetheless, it’s a good idea to stay in front of the issue.)

You might consider providing certain incentives to buyers to tackle the risk of cancelations. For example, if you have a mortgage affiliate, it may be possible to offer rate locks and buydowns, the latter of which could give buyers a little more runway to make payments comfortably.

3. A 2-10 HBW Structural Warranty can provide added confidence

housing uncertainty 2-10 HBW

In a market rife with doubt, providing confidence is key. A 2-10 HBW Structural Warranty can provide confidence to both you and your buyers in several ways.

First is in terms of budgetary protection against uncertainty. The average cost of a structural defect ranges between $42,000 and $113,000 per claim. Up to 80% of structural defects are caused by uncontrollable soil movement. That could mean a lot of unexpected costs for something entirely out of your control.

With a 2-10 HBW Structural Warranty—the industry’s leading coverage for builders and their buyers—you can reduce that financial risk, which can create more confidence for you and your buyers.

Second, a 2-10 HBW Structural Warranty could provide third-party validation of your quality. When the industry leader backs up your claims of quality, it can give your buyers the confidence they need to make a smart purchasing decision.

Finally, buyers want a 2-10 HBW Structural Warranty. According to a co-sponsored survey by 2-10 HBW and the NAHB, 94% of prospective home buyers are more likely to purchase a new home from a builder who offers a structural warranty. Plus, four of five buyers value a third-party, insurance-backed structural warranty.

Conclusion: Become a 2-10 HBW Builder Member

Market changes are inevitable. How you respond can make or break your success. As the industry-leading structural warranty administrator, 2-10 HBW can help you reduce your risks in challenging markets and help you protect your profits, promote your quality, and protect your future by controlling what’s behind you.

Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW Structural Warranty.

Get a Quote

Related content

Why Luxury Builders Choose 2-10 HBW

Landscaping Ideas for New Construction

4 Reasons Why New-Home Volume Builders Prefer 2-10 HBW

You Build it, We'll back you up.

Learn why 1 in 5 new homes nationwide are covered by a 2-10 HBW Structural Warranty.