As a home builder and remodeler, the warranty you offer clients in your contracts can make or break your sale. Your clients want to protect their investment, but if you offer too much, you could find yourself seriously cutting into your profits.

For the homebuyer, their home is generally the largest purchase they’ll make in their lifetime and they want to make sure they’re getting a great deal. Whether they’re buying for the first time or choose to make an investment in their property through remodeling, warranties can offer peace of mind.

African American couple with white contractor explaining warranty

Contractor Warranty Upsell

While some states have set minimum requirements for how long a workmanship warranty has to remain in effect at the completion of a job, and other aspects it needs to include, most states let you determine the length. To provide extra value to your potential clients, you could add to the length of the warranty for longer, or offer to cover a bit more than what the competition does. Doing so, however, means that you must be able to afford to offer that coverage.

When working with a potential client to encourage them to sign a contract with you for a remodeling job, be sure to discuss exactly what you offer if they experience future problems. In addition to the bare-bones basic warranty that’s included for free, you could entice the client to spend more on a more comprehensive warranty with you.

To increase the likelihood that you’ll be able to sell a warranty in addition to the construction work for the project, consider offering multiple options to choose from, with each option providing more comprehensive coverage than the previous one.

Creating Solid Contracts

When discussing your contract with potential clients, make sure they understand that a construction warranty isn’t the same as homeowner’s insurance. Explain how your warranties are there to provide the peace of mind they are looking for and allow them to ask questions about the kind of coverage they want and need.

When developing options for your clients, be sure to include:

●          Whether failure to make payments on the warranty voids it

●          Whether the warranty is transferrable to a new owner 

●          When the warranty officially begins, usually either the last day work is done on the home, upon receipt of their final payment, or at another time

●          Any warranty exceptions such as using owner-supplied materials

●          Instructions and expectations for making a claim

The clearer everything is spelled out, the better. When the buyer knows exactly what to expect from you, and you know what to expect from the buyer, it’s easier for everyone to fulfill their obligations as outlined in the contract and warranty.

Going above and beyond to offer optional extra coverage during your sales process is a great way to earn extra cash. Though you won’t always be able to prevent things from happening that lead to claims, by focusing on providing top-notch quality in the first place, you can reduce the number of callbacks and warranty claims, allowing you to maximize your profit.