Are You Marketing Your Warranty Coverage?December 10, 2019
As a homebuilder you know that your new construction homes have many advantages over pre-existing homes. A few of the advantages are obvious: customization, newer and better construction materials, and open concepts not often seen in older homes. But a not-so-obvious advantage, which you may not be aware of, is the warranty!
Unlike a warranty on a pre-existing home, a new-home warranty can cover things such as the home structure – the foundation, the load-bearing walls, and even the roof supports. Needless to say, this gives buyers of new construction more peace of mind—but most of them don’t know something like this exists! After all, it doesn’t for pre-existing homes. All this is to say that if your home warranty isn’t a part of your marketing strategy, it needs to be in 2020! New home warranties are an incredibly strong selling point. Give it some HYPE! And if you aren’t sure where to start when it comes to marketing your warranties, these three tips are bound to give you some ideas.
A warranty on a new home covers a lot; so make sure to use your marketing channels to highlight the strength of the coverage. While you obviously hope that people don’t have to use their warranty, showing the expanse of your warranty’s coverage can help set the mind of the buyer at ease! Consider the last time you purchased a vehicle. Many people purchase previously used vehicles because they figure that any big problems the vehicle had were taken care of by the dealership or the previous owner. The same goes for home buying. Some people hesitate to purchase brand new because no one has taken the home for a “test drive.” Anything that goes wrong falls to the new owner. Yikes! So just knowing that the foundation and other structural components of the house are covered in the event something goes wrong can be the final item to turn a hesitant shopper into a new construction homebuyer.
Fixing a foundation can cost thousands, if not tens of thousands of dollars. Let’s be honest: That is money that NO new homebuyer will want to spend. And in all honesty, their home is BRAND NEW—they shouldn’t be worried about having to spend that money. A new construction warranty can save the homeowner in the event of big, expensive problems. Highlight this! Use your social marketing channels to focus on the cost of items. For example, you can share a list of different items and their replacement costs. This will give homebuyers a sense of ease, knowing that they’re not likely to have to incur this financial setback in the unlikely event that something big happens to their brand new home’s foundation, roof, or similar.
Making claims and coordinating repairs is not a fun process. But chances are that your warranty makes this process smooth and easy—and that’s worth pointing out! Share information about how simple it is to make a claim. Share links to the warranty company to explain the process of making a claim. Also, use your marketing channels to reinforce the warranty process. Stress that homeowners don’t have to coordinate the repairs because it’s a process that many don’t like! The warranty company will take care of that for them—a huge selling point.
New home construction can be a hard sell. After all, building your own home—or buying brand new—comes with a unique set of challenges not faced by those who choose to buy a previously owned home. But when you share the details of your new home warranty, you’re more likely to make potential homebuyers take notice—and do business with you!