How a Builders Warranty Helps Your First-Time Home Buyers

How a Builders Warranty Helps Your First-Time Home Buyers

The new generation of first-time home buyers (i.e., millennials) values move-in readiness in their homes. When a young first-time buyer considers a new home from a builder like you, it highlights that desire. But many first-time buyers, especially millennials, also worry about “What if” questions, especially “What if something goes wrong?” Plenty of first-time buyers came of age during a financial crisis (The Great Recession, the COVID-19 recession, etc.) and are apt to look out for worst-case scenarios. As a builder, you can help address their desires and relieve their worries with a builders warranty.

Why a builders warranty for move-in readiness?

It may be tempting to think, “My new homes are move-in ready, and I’ve never had structural issues before.” But from the perspective of a younger, first-time home buyer, extra assurance is crucial to their decision-making. A builders warranty gives your buyers peace of mind that their move-in-ready home stays move-in ready beyond the actual move-in date.

Structural claims can occur several years after a buyer moves into their home. This can come as a surprise to your buyers, especially since soil movement—which is uncontrollable—causes 80% of structural defects. It’s one thing for buyers to expect scuffs, dings, and breakdowns in their homes throughout the years. But full-scale structural problems are rarely on their radar. If something were to go wrong structurally, buyers will likely question why their home wasn’t as move-in ready as they thought. Whether it’s directly your fault or simply unfortunate circumstances, buyers will likely look to you for answers.

Since only builders may purchase a builders warranty, providing one for your buyers proactively positions you as a builder who’s looking out for their needs. It adds a layer of protection and assurance, which buyers value greatly, and gives them confidence in their decision.

A builders warranty also gives buyers third-party validation of your work. First-time buyers constantly look for outside parties to validate their decisions. A builders warranty from 2-10 Home Buyers Warranty (2-10 HBW) tells them, “This is a quality home. And even if something happens structurally, you have a solution backed by the industry leader.” This is a big reason why 1 in 5 homes in America is covered by a builders warranty from 2-10 HBW.

A builders warranty can take ‘what if’ off the table

Making a down payment is a big commitment for first-time buyers. It’s likely the biggest spend they’ll make at that point in their life. The last thing they’ll want is to spend even more money to address structural issues that crop up if their builder is unable to. A builders warranty from 2-10 HBW can protect you and your buyers against this possibility.

The average cost to address structural claims ranges from $42,000 to $113,000 per claim. If a buyer were to experience a structural defect in a home you built, they would likely expect you to have a solution that makes their home livable again as soon as possible. A builders warranty lets you proactively address this expectation and put their minds at ease.

Additionally, 94% of prospective home buyers say that they’re more likely to purchase a new home from a builder who offers a builders warranty. Buyers understand how important a builders warranty can be to them. And it’s a relatively small investment for builders. The cost of a builders warranty from 2-10 HBW is less than 0.5% of the total purchase price of the home (including land). It’s a good investment that buyers want you to make, and it can boost your reputation, too.


First-time home buyers value peace of mind and move-in-ready homes. A builders warranty provides peace of mind by covering extremely expensive structural issues. It enhances the move-in readiness of the home by providing a solution to unexpected problems. And simply, buyers are more likely to work with builders who can protect them against expensive and unexpected structural issues.

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

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.