Why would a home buyer purchase a home from a builder with a builders warranty?
As a builder, you’re required to provide coverage for structural defects on all the homes you build by law. An industry-leading builders warranty from 2-10 Home Buyers Warranty (2-10 HBW) can protect you and your buyers from damaging financial losses resulting from expensive structural repairs. Overwhelmingly, buyers prefer to buy from builders who offer a structural warranty. But why? Today, we’ll answer that question.
Buyers value third-party validation
Buying a new home is a huge financial commitment. Like most large financial commitments, buyers will want to know that they’re making the right decision before pulling the trigger. They’ll certainly look for third-party validation they’re making the right decision. Consider 2 facts about buyers when it comes to buying a new home:
- 94% of prospective home buyers are more likely to purchase a new home from a builder that offers a structural warranty, according to a co-sponsored survey from 2-10 HBW and the National Association of Home Builders (NAHB).
- 4 out of 5 home buyers value an insurance-backed, third-party structural warranty.
It’s clear that buyers value third-party validation when searching for a new home. A builders warranty from 2-10 HBW provides third-party validation of the quality of your homes. A 2-10 HBW builders warranty provides 3 ways to assure third-party validation for you.
- 1 year workmanship warranty. This warranty gives you and your buyers defined standards for defects in workmanship and materials. This coverage lasts a year and protects you and your buyers from problems in fit and finish.
- 2 year distribution systems warranty. The distribution systems warranty provides clearly defined standards for defects to electrical, plumbing and mechanical systems. It lasts 2 years from the date of enrollment.
- 10 year structural warranty. 2-10 HBW provides the industry-leading structural warranty, protecting your homes from structural defects for 10 years. This includes defects caused by soil movement.
All 2-10 HBW builders warranties are backed by Swiss Reinsurance Company (Swiss Re), one of the largest and most trusted reinsurance companies in the world.
Buyers want to protect their investment
Your buyers will put down a sizable chunk of money to buy one of your homes. They’ll want to be sure that they have the right protection for one of their biggest investments. You can give them that protection (and protect yourself) by providing a 2-10 HBW builders warranty.
The average cost to address a structural claim ranges between $42,000 and $113,000. Without warranty coverage, that liability falls to you. Even worse, if you can’t afford to address the claim, your buyer will likely shoulder that cost. On top of the burden of paying to fix that issue, it can cost you or your buyer tons of time to find a solution.
A builders warranty from 2-10 HBW mitigates those risks for you and your buyer. If a structural defect arises, 2-10 HBW takes care of it. We cover the cost, letting you address the issue and give your buyers peace of mind. When prospective buyers know they don’t have to worry about spending time and money fixing problems outside their control, it makes their buying decision much easier. It also helps you build trust with prospects, which is extremely important.
Buyers like to work with builders they can trust
Buyers have many choices in builders, but they all want one thing: confidence that they’re making the right decision. A structural warranty reinforces the idea that when they buy from you, they’re making the right decision because you’re actively protecting them from things outside their control.
When you cover your homes with a 2-10 HBW structural warranty, you’re telling your buyers 3 important things:
- You’re safe when you buy from me because I work with the industry leader in structural coverage.
- You get peace of mind knowing that I’m committed to building a quality home, and I back up my commitment to quality with a structural warranty.
- You’re making the right decision buying from me because if you were to have a structural issue, I have the best available solution.
Additionally, only qualified builders can provide 2-10 HBW structural warranties. We have strict standards that we expect our Builder Members to abide by. We don’t allow builders with unacceptable loss histories or evidence of poor craftsmanship in the past provide our warranty. Just by working with 2-10 HBW, you show your clients they can trust you because you’re protecting them with an industry-leading builders warranty.
2-10 HBW offers the most comprehensive structural warranty coverage
2-10 HBW pays more for structural damage claims than any other competitor. We have the most responsive warranty administration department, which helps resolve claims and other homeowner problems. We help you stand by your promise to build the best homes possible for your prospects. Because when you build it, we back you up. When your prospective buyers know that you’re covering them with the industry’s leading builders warranty, it makes their buying decision much easier.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.