Why is it that home builders have to take care of demands and requests that many other manufacturers do not? Generally, most builders try to control the warranty process themsleves after selling, building and delivering the home.  Other manufacturers realized long ago that this process is not the best route to take.

When you look at a typical consumer's warranty expectations, it goes something like this:

1. Consumer buys a product, maybe a computer monitor or coffe maker.

2. They find a warranty card in the packaging, fill it out and send it to some third party, not the store it came from or the actual manufacturer.

Now, when that consumer buys something of higher value/cost the warranty is more like a book than a postcard and the book generally is thrown in a file cabinet or bottom kitchen drawer.

As we go into higher and higher priced items, it changes.  Take for example automobile manufacturers.  They realize the importance and value of 3rd party companies.  Consumers accept that an insurance company must be in palce prior to delivery of the car.  Although, insurnace can't be purchased from the manufacturer or the dealer, just a 3rd party.  

Also, could you imagine if a consumer went to a body shop to have a ligitimate, covered repair done and requested to have countless other touch ups to be done as well.  It happens all the time with builders.  The builder goes back to correct a drywall crack and ends up spending hours and a bucket of paint on non-warrantable items.  

Since a home is so expensive, generally the biggest investment of ones life, demands are high and expectations are higher.  This is why a 3rd party presence is so crucial to builders.  

Homeowners are increasingly hiring private home inspectors and attorneys during their buying process.  There is no better time to have an unbiased, third party mitigator between the builder and homeowner.  There is no need for builders to take unnecessary risk by attempting to perform warranty service in-house.

 

                      

 

Seattle Tacoma New Construction Third Party Warranty Management Administration for Home Builders

 
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9 Comments on Builders need a third party presence

JUL
11
Hit Router

Kevin, this is the same question again, would this be the right situation for a small spec builder and their buyer.  Would your company be doing the home inspection?  What is the average cost for a 2000 or less sq. ft. home?  Would you come to Port Townsend?

4:49pm • #1

Hi Sandra, we are contracted by the builder to administrate their one year warranty.  Cascade Builder Services would perform the New Home Orientation and punch list with the homebuyer then act as the administrator for the 12 months post closing (provided that said builder offers a one year warranty).  If the builder that you are referring to is interested, feel free to pass on our website link: www.cascadebuilderservices.com

We most definitely work with small, spec builders and have no problem traveling to Port Townsend.  Pricing would be discussed at a formal presentation with the builder.

Also, no, we don't perform home inspections on the homes that we have contracted with builders due to a conflict of interest.  However, we do otherwise.

5:03pm • #2
JUL
12

Kevin,

Interesting information! How broad of an area do you work?

Judy

7:51am • #3

Hi Judy, we specifically and carefully built our company around mobility.  Our operating system is 100% online and our tablet PCs are all connected to the internet in the field.  This gives us the flexibility to travel virtually anywhere to conduct business while maintaining optimum communication internally and with builders, trades and homebuyers.

So the simple answer, as of right now, with our current staff, is we're ready and able to work basically anywhere in Washington state.  However, if we were presented with a large enough, interested builder, in a different state, we could be ready to go in a matter of weeks.

12:31pm • #4
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Do you do new bank owned homes?

2:06pm • #5

Hi Michael-That would require a contract between the bank and us.  I'm not sure if banks are offering warranties but if some are then we would definitely be willing to arrange a customized program for them.  We take pride in our abilities to be flexible.

2:20pm • #6
JUL
18
345,604 Points 3 Featured Posts Outside Blog

I noticed with our new Canon camera and Tamron and Sigma lenses that the warranty cards actually were sent to Canon, Tamron, and Sigma. I bet they just get put in a great big bucket and sent to their third party insurance company.

Imagine if God offered life insurance -- LOL. Good thing we have third party insurance for that.

9:46am • #7
JUL
24
348,579 Points 4 Featured Posts Outside Blog

I think California law now requires builders to provide a warranty of one year, which is why so many home inspectors here to "warranty inspections." There are some builders who offer two-year warranties, and at least one that I know of that offers a ten-year warranty. Of course, as with just about anything in business, they probably sell their warranties to the re-insurance industry.

6:10am • #8

Jim-That's interesting about Canon, Tamron and Sigma.  You're probably right about the great big bucket.

Russel-I believe California does require a builder's warranty.  We had a bill get through the house, HB 1393, a few months back requiring a builder warranty but it didn't get through the senate.  Many builders here give warranties anyway to keep up with their competition but they aren't required to by law.  I'm crossing my fingers that it goes through next session. LOL

11:46am • #9

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New Construction Warranty Management - Kevin Pierce

Tacoma, WA

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Cascade Builder Services

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