If you purchased a new, 4K TV and 8 months after your got it, it stopped working, would you expect the manufacturer to repair or replace it? Naturally, you would, because most large appliances come with a written warranty. This written warranty assures you that the manufacturer will repair or replace it if it breaks after only 8 months.
Buying a home is a much larger investment than a TV. It makes sense that the buyer would also expect such a large purchase to include a substantial warranty on the quality of the materials, workmanship and structure of their new home. Whether you are building a new home or you are remodeling an older home, if you provide the benefit of a structural warranty on the work you do–that’s smart planning!
When you sell a new home, your buyer trusts that when you laid the foundation, poured the walls, built the framing, installed the electrical, connected the plumbing, hung the drywall and other structural components, you did high-quality work. Some Builders only give a verbal guarantee to fix anything that goes wrong or offer their own one-year warranty. But if the Builder does not offer a written warranty, with specific coverages, the buyer has no tangible protection in the event that something goes wrong. In addition, with a verbal guarantee, the Buyer might want more repairs than the Builder is willing to do. In contrast, a written warranty clearly enumerates what is and is not covered, how long coverage lasts and who is responsible to fix it. This type of warranty, an expressed, written warranty, offers you peace of mind, as you know your specific responsibilities, what the warranty covers, and what to do if something malfunctions.
Let’s look at our standard 2+8 10-year new home warranty. During the 1st year, the Builder agrees to correct defects in workmanship and materials as listed in the warranty. These sorts of repairs are comparable to a 30-day or 11-month punch list. That is likely what you already offer now. During the 2nd year, the warranty covers flaws in major delivery systems:
For example, if the electrical system’s wiring fails to carry the load specified, if improper installation or materials caused the failure, the Builder will correct it. In contrast, broken electrical fixtures would be the Home Owner’s responsibility after the first year. In the remaining 8 years, the Warrantor covers specific structural components, listed in each individual warranty. If the buyer is using HUD, FHA or VA financing, the Builder needs to provide a HUD-approved warranty. Our 2+8 HUD warranty covers those needs.
A standard 5-Year Remodeling and Addition Warranty covers many of the same things as a 10-year warranty. The Remodeler’s Warranty is appropriate for renovating an older home or building an addition, such as a sunroom. This warrants only the new part of the home. During the 1st year, the remodeling warranty covers issues with workmanship or materials. The Remodeler is responsible for these repairs. Again, the warranty very specifically enumerates what constitutes a covered repair, versus what is routine Home Owner maintenance. For example, if a faucet, valve or pipe leaks, the Remodeler will repair it, if faulty installation or defective materials caused the leak. But if worn washers or seals caused the leak, the Home Owner is responsible to replace those. The Remodeler’s Warranty also includes 5 years of coverage for specified load-bearing structural components. The Warrantor will repair such problems. A Remodeling and Addition Warranty is tailored to cover the specific work you are doing. Keep in mind that the Remodeling and Addition Warranty only covers the new portion of the home, not the existing structure.
The Builder provides the warranty as part of his or her superior service. If you are a Builder Member, we have verified and approved you, to ensure that you do top-quality work. Home Owners may not purchase a warranty themselves. This restriction is because a Builder is responsible to repair 1st year, or in some cases 2nd year repairs. However, Home Owners may ask their Builder to provide the warranty. Compared to the cost of an unexpected repair, a warranty is a great investment! The warranty cost will vary, depending on such factors as the sale price of a home.
The builder gives the Written warranty booklet to buyers at closing. That warranty booklet provides details on how the Home Owner should notify the Builder or the Warrantor about an issue. The Service tab on our Home Owner website allows the Home Owner to submit a service request online. In general, for the first 1 or 2 years, the owner should contact the Builder. For years 3 to 10, he or she should contact the Warrantor directly.
10-Year Structural Warranties are transferable. A warranty covers the structure at a specific address. Even if the Home Owner sells the home and new owners need an issue repaired, the Warrantor will honor the warranty. It’s important for the re-seller to give the new owners the copy of the warranty booklet. The booklet will let them know not only what is still covered, but will also provide them with contact information for both the Builder and the Warrantor. Sellers may submit a warranty transfer request here.
The expressed, written warranty helps buyers avoid the pitfalls that are often associated with verbal promises. With an American eBuilder warranty, the Home Owner knows up front exactly what is covered. They also know what the duration is and what is considered Home Owners’ maintenance. Builders and Home Owners alike find comfort in the warranty’s arbitration provision. If an impasse arises between a Home Owner and a Builder, the expressed, written warranty provides an arbitrator to hear the respective positions and resolve the impasse. Arbitration avoids protracted litigation and its associated expense. Both Buyer and Builder win!
American eBuilder has been providing new home warranties across the US for over 13 years. We serve Home Buyers, Builders, Realtors, loan processors, mortgage lenders, title companies and developers. Our warranties strengthen a Builder’s reputation and provide assurance and peace of mind to Home Owners. We are proud to be the first name lenders and home buyers turn to when they need a HUD, VA or FHA approved, insurance-backed warranty.
If a Builder can offer an American eWarranty expressed, written warranty on a new, single-family home, townhouse or condominium, he or she has met our underwriting requirement. That builder is interested in providing the best new-home product to his or her buyers. Home Owners love an our warranties because they have in writing the items and issues guaranteed to be warranted by the Builder.
Give us a call at 717-526-2090 to learn more!
119 Aster Drive Suite 105, Harrisburg, PA 17112
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