How Tools Like Structural Warranties Help Builders
Perhaps you’ve heard that home builders warranties make good business sense. There are several reasons this advice rings true — let’s review the top 5 business benefits of using home builders warranties in your residential construction business.
1. Warranties help builders avoid costly legal battles
As a builder, you want to manage the potential risks that are part of doing business, especially if those risks could lead to costly legal battles should something go wrong after you’ve finished building a home.
Home builders warranties are part of a comprehensive builder risk management program and they can help you save on legal costs. The exact setup can vary from one warranty provider to another, but with 2-10 HBW’s home builders warranties, all disputes go through arbitration rather than the courts.
It’s a far more affordable process than litigation, and you can read more about the specifics of how structural warranties help builders avoid legal costs here.
2. Buyers prefer purchasing homes with a home builders warranty
The majority of home buyers feel more comfortable purchasing a home with warranty coverage. One study found that a whopping 94% of prospective home buyers said they would be more likely to purchase a home from a builder who offers a structural warranty.
This appreciation is expounded once they understand expensive structural issues can be. A single structural claim can cost between $75,000 and $125,000. Having the peace of mind a 2-10 HBW Structural Warranty provides adds value.
3. Home builders warranties help you save time
Your warranty company should handle things like homeowner phone calls and complaints for the duration of coverage. With 2-10 HBW, that means you’ll have this support for the entire 10 year duration of the warranty.
Dealing with homeowner complaints can be incredibly time consuming and you never know when something might go wrong. When you protect yourself and your business, you’ll have more time to focus on other tasks.
4. Give your sales and marketing a boost
It’s tough to stand out in a crowded market, but home builders warranties can help you differentiate your business from your competition. Your warranty provider might even have marketing materials you can use, so be sure to ask.
When writing your website copy or designing a new piece of marketing collateral, think about the reasons buyers value this type of warranty protection. For starters, they’ll get peace of mind that their home’s structure is protected. If the warranty company you choose has an impressive history of paid out claims, be sure to highlight that, too — it helps build trust.
5. Home builders warranties help educate buyers
Every homeowner can benefit from knowing more about their home, especially when it comes to things like the house’s structure and how to maintain it. Warranties place a large emphasis on educating the homeowner about proper maintenance.
When homeowners know more they’ll be less likely to come to you about small concerns and minor issues. They’ll be empowered to maintain their home properly, ensuring they stay happy with their purchase for years to come.
Whether you’re building single-family homes, townhouses, or condos, structural problems are always a possibility. Structural Warranties can protect builders like you, and your buyers, from devastating structural problems. Learn more about home builders warranties and how they can help your business.