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How a structural warranty adds value for builders and buyers

Contributed by Patti Nolan-Lento, Regional VP-West 2-10 Home Buyers Warranty

No one expects a new home to have structural issues. Responsible builders and careful buyers always do everything they can to mitigate this problem. But when this unexpected event does occur, 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. Let’s see some ways a structural warranty adds value for builders and buyers.

For builders and buyers, it can be a budget saver

Building and buying a new home is expensive. For builders, each new home you build creates a long tail of liability. Because for each home you build, you’re responsible for guaranteeing that the home’s structure is sound. That kind of liability can really add up quickly. In fact, the average cost to address a structural defect ranges between $42,000 and $113,000 per claim.

With a structural warranty from 2-10 HBW, you transfer those liabilities to us. If any of your covered homes faces a structural defect, 2-10 HBW’s industry-leading coverage protects your bottom line. Instead of having to find the money, time and resources to address the issue, 2-10 HBW does it for you. That lets you do what you do best—build quality homes.

For your buyers, a structural warranty protects their budgets, too. Because you’ve transferred your liabilities to us, your buyers don’t need to worry about trying to address covered structural issues themselves. When you protect your buyers’ budgets, it’s a great way to build trust. For builders, a structural warranty builds trust and provides third-party validation Buyers want to buy from builders they trust. Covering your buyers’ homes with a structural warranty from 2-10 HBW is an important step to building that trust. That’s because you’re telling potential buyers three things when you cover their home with a structural warranty from 2-10 HBW: n Building a quality home matters, and I’m backing up my commitment to quality with a structural warranty. n We’re working with and vetted by the industry leader in structural coverage. That means your home and budget are in the best hands. n If something goes wrong with the structural integrity of your home, we have the best solution possible. When buyers have one less thing to worry about thanks to your 2-10 HBW builders warranty, it builds trust.

Additionally, a structural warranty from 2-10 HBW provides valuable third-party validation. Third-party validation is worth its weight in gold. To understand why, think about the last time you wanted to go to a new restaurant. You likely went online to see what the Google ratings were, and perhaps you sought out an expert’s opinion in a “Best Restaurants” list. 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, because Builder Members must meet certain criteria to work with us. And when the industry leader vouches for you, it goes a long way in proving that you provide added value.

For buyers, a structural warranty affects their buying decision

When buyers understand what a structural warranty does for them, it can affect their buying decisions. Consider two important facts about how buyers view structural coverage.

Four of five buyers value a third-party, insurancebacked structural warranty.

94% of prospective buyers say that they’re more likely to purchase a new home from a builder who offers a structural warranty, according to a joint survey from the National Association of Home Builders and 2-10 HBW.

These facts alone motivate many builders to cover all their homes with 2-10 HBW. You can give buyers something they really want and give them the best possible version of what they want. When you’re speaking to your buyers’ needs before they even ask, it shows how much you understand them.

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

Questions?

Contact Membership Manager Karen Hall at (360) 352-7800 ext. 137 or email karenh@biaw.com.