The Benefits of a Builder's Warranty: What You Need to Know

Buying a Home, New Construction Homes by Natasha Lingle

New Doesn’t Always Mean Perfect

Avoiding repairs and maintenance is a major reason for buying new homes. The buyers expect perfection, but very few new construction homes escape all problems in the first year. It can take a year of living in a new home and experiencing all of the seasonal changes to put the home and its systems to the full test. With the help of your real estate agent, make sure to check sales contract to see if the builder’s warranty was included.

 

What is Builder’s Warranty ?

Some new home warranties are supported by the builder, while others provide a third-party warranty that continues coverage even if the builder goes out of business before the warranty period expires. The warranty should set forth responsibilities for repairs and exact procedures to follow in case the buyer finds a covered defect.

It’s imperative to review the warranty meticulously, as it outlines the repair responsibilities and the precise procedures to address any covered defects. Following the warranty guidelines meticulously is paramount. For instance, opting for outside contractors to rectify covered issues might inadvertently void the warranty benefits.

 

What’s Covered Under Typical Builder’s Warranty

A typical 1/2/10 builder’s warranty covers materials and workmanship for one (1) year, systems such as plumbing and HVAC for two (2) years, and major structural defects for up to ten (10) years.

A builder’s warranty will typically exclude:

• Damage due to the abuse, misuse, neglect, or failure to maintain adequate ventilation and humidity levels in the home, or failure by the homeowners’ association to provide maintenance.
• Natural wear and tear and deterioration of construction materials within expected range, including warpage or shrinkage within industry standards due to weather conditions or soil movement or settling.
• Damage caused by outsiders, natural events, or “acts of God”.
• Damage caused by people hired to work on the property.
• Housing costs and expenses if the owner must move out during repairs.
• Consumer products, such as a refrigerator and dishwasher, which have manufacturer warranties.

 

Important, the initial home purchase contract should contain the builders’ warranty. A request for the buyer to sign a separate warranty document at closing, unless agreed to during the initial contract phase, may signal an attempt by the builder to narrow the scope of the warranty.

 

Your Realtor’s Role

A good real estate agent will admonish buyer-clients not to go on autopilot after closing and assume that everything is problem-free. Sometimes even a small defect can be a symptom of a bigger problem. For example: a few cracked floor tiles could signal upheaval in the underlying slab.

An agent will provide a valuable service to you by sending a reminder to do a walk-through and schedule an independent home inspection about 4–6 weeks before the warranty period ends. If the inspection turns up problems, the inspector’s report provides expert substantiation of the defect.

 

Bottom Line

Make sure your New Construction Contract of Purchase is contingent on the review of the Builders’ Warranty. If you are ready to start looking for your new construction home, please give me a call or text at (571) 455-0178 or email me at: homes@natashalingle.com

 

AUTHOR: Natasha Lingle is a full time real estate agent serving Vienna VA and Northern Virginia communities. She is an Accredited Buyer Representative (ABR) and Certified New–Home Construction Buyer Representative. If you are planning to buy a finished new construction home or would like to build fully custom home, you can rely on her knowledge. As your new home buyer agent, she will guide you through the steps and processes of purchase, construction, and customization. In addition, she will:

• explain characteristics of new homes and highlight the differences between custom and spec constructions;

• evaluate pros and cons of purchasing a new home versus an existing home;

• help you understand new-home construction sales contract;

• and explain such nuances as “builder’s warranty”.

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Home Buyers’ Guide:

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