As the year dwindles down, now is the time construction owners begin to make plans for the 12 months ahead. Most of that prep and planning centers around financials. How can you improve margins? Where might some project profits be falling through the cracks? And what new strategies can you employ to strengthen your construction company’s financial health?
That’s where structural warranties can come in to play for your business growth strategy.
No one expects a new home to have structural issues. Top-notch home builders like yourself and thoughtful home buyers do all they can to avoid this before it even becomes a problem. However, as you may well know, even the best builds don’t always go to plan. So, when the unexpected does occur, what can you do to protect your bottom line?
A structural warranty from 2-10 Home Buyers Warranty (2-10 HBW) – the industry leader in structural warranty coverage – can be a business and budget saver. Maximize profits. Minimize risks. It’s that simple: 2-10 HBW provides confidence you can build on. But it’s not just you the builder who benefits financially. Your clients do, too.
Coverage relieves your financial liability when the catastrophic becomes costly while providing home buyers the security they want.
Let’s dive in deeper. How does a structural warranty add value for both home builders and buyers?
Cha-ching: How do home warranties save you money, time and stress?
It’s no secret: New homes are an expensive investment – even for those not paying the price tag. Take contractors like yourself into consideration. Each new dream home you help bring into reality comes with a lengthy list of liability. Because for each home you build, you’re responsible for guaranteeing the home’s structure is sound.
And if something goes wrong, that kind of liability adds up really quickly. How costly are we talking? Per claim, the average cost to fix a structural defect ranges from $42,000 to $113,000.
That’s a serious budget breaker – unless you have the type of protection guaranteed by a structural home warranty. With 2-10 HBW, those liabilities transfer to them. For any home you have covered that then faces a structural defect, their industry-leading coverage protects your business’s bottom line.
It goes deeper than just your wallet, too. Instead of having to find the money, resources and time to address the structural issue yourself, 2-10 HBW does all the hard work for you. For busy builders looking to grow their business, that means they can keep looking forward instead of looking back. You’ll be able to focus on what you do best – building new, high-quality homes.
But wait – we can’t forget about your clients either! Why is a home warranty worth it for them? Well, for starters, their budgets are just as important as your bottom line – and structural warranties guarantee to protect both. With liability transferred to an outside company like 2-10 HBW, home buyers don’t have to worry about trying to address covered structural issues through their own pocketbooks.
This can be a big win for building your business in the coming year and netting more profits. Offering this level of coverage from the start is a great way to build trust and win the deal.
Your new competitive advantage: How can offering structural warranties set you apart?
When you’re choosing which vendors to buy your lumber, steel or appliances from, you probably do your homework first, right? You might check their website, read testimonials or ask other builders what they think. While some of this work is tied to getting the best price or other mitigating factors, much of it is to check whether this is a company you can trust.
Home buyers are the same. They want to work with builders they can trust. An important piece of building that trust is covering your buyers’ homes with a structural warranty. When you do so, you’re telling them three things all at once:
- Building a quality home matters, and I’m backing up my commitment to quality with a structural warranty.
- Not just anybody can offer coverage from a company like 2-10 – but we can. We’re working with and vetted by the industry leader in structural coverage. That means your home and budget are in the best hands.
- If something goes wrong with the structural integrity of your home, we have the best solution possible.
Coverage also provides third-party validation, which put your home building business above others in the same area. What is third-party validation exactly? It’s all about building credibility for your brand and being ranked among the best of the best.
Think about a time when you wanted to pick a new movie to watch. You likely searched online for what critics or other fans were saying, and maybe you even sought out a “best of …” list. Think of those lists as a third-party. When a third-party expert talks positively about something, it’s an instant credibility booster that’s stronger than a brand just boasting about itself. This third-party approval resonates with clients when making buying decisions.
Now imagine how much more third-party validation a potential buyer will seek out when purchasing a new home from you. Working with 2-10 HBW provides that third-party validation. That’s because 2-10 members must meet certain criteria to be considered for coverage.
Once you clear that threshold and the industry leader vouches for you, that speaks volumes about the type of value you provide as a home builder. You aren’t just any contractor. You’re one of the top in your market.
This or that: How does a structural warranty affect home buyers’ decision-making?
Numbers don’t lie – and here are two figures that prove how necessary structural coverage is when attracting clients:
- According to a joint survey from the National Association of Home Builders and 2-10 HBW, 94% of prospective buyers are more likely to purchase a new home from builders who offer structural warranties.
- Four of five home buyers value a third-party, insurance-backed structural warranty.
By offering structural coverage, you meet buyers’ needs – without having to even ask them what they are. And that’s what every client wants when making an investment as big as a new home: to work with a company that truly understands them.
It’s not just good enough to give them something they really want. You also want to provide the very best possible version of coverage. That’s what 2-10 Home Buyers Warranty can do for you – and the reason why Buildertrend has partnered with this provider.
The leading construction software solution and leading structural warranty provider are working together to minimize risk and maximize bottom-line potential on every home you build through comprehensive, affordable warranty options. Sign up now here!