The right builders warranty can be a differentiator and in some cases, a business saver. Let’s look at why providing a builders warranty administered by 2-10 Home Buyers Warranty (2-10 HBW) matters to you and your buyers in four specific ways.
1. A builders warranty protects your bottom line (and your buyers’ budgets)
Building quality homes is already an expensive endeavor right out of the gate. Fortunately, you likely have things like materials and labor baked into your budget. But did you know that structural defects can be devastatingly expensive, too?
The average structural defect costs between $42,000 and $113,000 to address. And structural defects can occur in clusters, even to builders who have never had a claim against them. That means that with each house you build, you’re carrying increased liabilities for up to 10 years, thanks to implied warranties.
A builders warranty from 2-10 HBW protects your bottom line by moving those liabilities away from you. For a fraction of the cost of addressing structural defects yourself, you get industry-leading protection. That’s less worrying about what could go wrong and more time to do the right thing for your company and clients.
In addition, a builders warranty protects your buyers’ budgets. On top of the structural protection it provides, a builders warranty administered by 2-10 HBW includes clearly stated performance standards for workmanship and distribution systems. That means that your buyers know who’s responsible for what when defects occur.
2. It promotes your quality and builds trust with buyers
It’s one thing to promote your quality yourself. But having third-party validation of your quality is even more effective and relevant.
When you provide structural warranty coverage administered by 2-10 HBW on your homes, you’re providing a sense of quality. Builders must meet certain expectations to become a Member of the 2-10 HBW warranty program. That’s a powerful sign to buyers that not only are your homes high quality but also you have a proven solution for unexpected issues.
Buyers want to know that you’re committed to quality. A builders warranty administered by 2-10 HBW shows that you go the extra mile to commit to quality. In addition, it shows that you can provide the best possible solution for worst-case scenarios.
3. A builders warranty helps you and your buyers plan for the future
When you complete a high-quality home, you want to be able to move onto the next to maximize your profit and footprint. And when buyers buy from you, they want it to be a step toward a bright future. A builders warranty can help fulfill both wants.
Providing a builders warranty administered by 2-10 HBW on your homes lets you plan for the future. That’s because you transfer your structural liabilities away from your company. This can greatly reduce your financial responsibilities and free up funds to move forward, instead of looking back and playing defense against the unexpected.
Additionally, a builders warranty can reduce the time and number of calls you may need to take when buyers have questions. Each callback costs $476 on average (according to the NAHB) in addition to time. 2-10 HBW’s Warranty Administration Team can field questions about workmanship, distribution systems, and structural issues for you.
And with coverage administered by 2-10 HBW, your buyers have an easily accessible resource to help them understand their home. So, when things don’t go as planned, they don’t need to wonder whom to call for help.
4. It lets you work with the industry leader in coverage
Working with an industry leader shows your buyers how dedicated you are to providing an exceptional home ownership experience. While it may be more convenient for you to rely on implied warranties (in the short term), taking the extra step of providing the best builders warranty on the market is a strong way to build trust with your buyers and prospects.
Finally, providing a structural warranty administered by 2-10 HBW shows prospects that you’ll work to fulfill their needs. After all, 94% of prospective home buyers are more likely to purchase a new home from a builder that offers a structural warranty.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.