How You Can Make New Construction Buyers Feel Secure

In light of hurricanes Helene and Milton, which caused widespread damage across the Tampa area, homebuilder warranties are more important than ever. These storms brought intense winds and heavy flooding, leaving many homeowners facing unexpected repairs.

According to the Insurance Information Institute, 90% of natural disasters involve flooding. While homeowners insurance covers some of these expenses, it usually doesn't include flood damage. This makes homebuilder warranties a crucial layer of protection, especially in high-risk areas.

When a home comes with a warranty, buyers feel secure knowing they're protected from many of the repair costs that could pop up after these storms. Continue reading to learn how you can help new construction buyers feel more secure by educating them on homebuilder warranties.

Overview of Homebuilder Warranties

Homebuilder warranties typically break down into several categories based on the part of the home they cover and the length of coverage.

The first part usually focuses on workmanship and materials. This might include anything from flooring to drywall, tile work, and paint. These items are often covered for one year, guaranteeing the builder repairs any defects caused by poor craftsmanship or materials. It's a crucial part of the warranty because it covers areas your clients see and interact with daily.

Next is the system's coverage, which usually lasts for two years. This covers the systems required to make the house livable, such as plumbing, electrical, and HVAC. If a storm surges through and something breaks, the damages can be expensive if not covered.

The final and most important part is the structural coverage, which typically lasts ten years. This section of the warranty covers major structural elements of the home, such as the foundation, load-bearing walls, and roof framing. This can be a key selling point in areas prone to natural disasters like floods, tornados, or hurricanes.

Positioning Homebuilder Warranties as a Selling Point

When guiding clients to purchase a newly built home, this is your opportunity to highlight why new construction offers more security than older homes. A significant part of this sales proposition stresses the long-term protection buyers won't find with older properties.

Older homes may have classic charm but often lack safeguards against unexpected issues. When buying an older home, your clients are also buying into potential problems like outdated plumbing, electrical systems, or roof repairs, none of which are covered by warranties. These issues can lead to major repair costs falling on the buyer.

For example, let's say a client buys an older home in a storm-prone area like Florida. After a severe storm, they notice significant damage to their roof. The average roof repair cost can range from $379 to $1,758, with more extensive repairs, such as replacing damaged shingles or dealing with leaks, costing up to $8,000. Now, they're left scrambling to find an available contractor, especially when many others in the area are dealing with similar issues.

On the other hand, if they had purchased a new home with a homebuilder warranty, the outcome would have been very different. After the storm, any structural issues covered by the warranty would be the builder's responsibility.

Boost Your Client Relationships and Business

Helping your clients understand the value of homebuilder warranties helps build trust and allows them to feel confident purchasing a new home. When buyers see that you're looking out for their long-term protection, it strengthens your relationship and positions you as a trusted advisor. This trust can easily lead to referrals and repeat business as your clients recognize the added value you bring to their homebuying experience.

To simplify the process, you can become a New Homes Expert with NewHomesMate, which helps you quickly find new construction homes. One of the standout features is the savings filter, which highlights properties offering incentives like homebuilder warranties. Using our tool, you can quickly identify homes with added benefits and offer even more value to your clients.