“We’ve lived in our house for three months and already had to fix a laundry list of items. The builder fights us on everything.”

“Building with them was a great process (until we needed to make a warranty claim)!”

“The builder doesn’t mind taking your money and then ignoring you after handing over the keys.”

A quick online search of home builder reviews reveals a common theme: warranty issues just like these.

No matter how seamless the building process was, or the quality of the construction, if the warranty phase falls short, that’s what homeowners remember. And they won’t hesitate to share their frustrations.

Once a negative review is online, the damage is done—and will likely live there forever—even if you fix the issue. That is a big problem when it comes to selling homes.

According to the National Association of Realtors, every homebuyer uses the internet during their home search, and for 43% of them, the process starts online. But your beautiful homes can win the war against a few one-star reviews, right? Well, according to data from Qualtrics, 94% of consumers have avoided a business based on a single bad review. If just three negative articles pop up in a search query, businesses risk losing nearly 60% of their potential buyers.

Ignoring warranty concerns is a costly mistake. A poorly handled claim can turn a happy homeowner into a vocal critic, while a seamless process can transform buyers into lifelong brand advocates.

Your Warranty = Your Promise to Buyers

A home warranty isn’t just a legal obligation; it’s a promise. It tells buyers, “We stand by our work, and we’ll be there when something goes wrong.” But when builders fail to deliver on that promise, credibility takes a nosedive. Customer experience research highlights the top pain points leading to negative reviews: frustrating interactions with employees, communication problems, and service delivery issues.

Sound familiar—just like the biggest complaints you probably hear about your in-house warranty process too?

Many builders see warranty claims as a cost center, but when managed correctly, warranties become a powerful brand asset. A smooth, hassle-free warranty process reassures buyers, encourages referrals, and boosts resale values. Data from WebFX shows word-of-mouth marketing drives twice as many sales as paid ads. In fact, referrals from friends make someone four times more likely to buy something. So, a well-handled warranty process can be the key to turning satisfied homeowners into brand ambassadors.

Why Warranties Matter More Than You Might Think

The warranty phase is the last interaction a buyer has with their builder. Even if they loved the home-building process, a frustrating warranty experience can completely change their perception. Try to put a price tag on each of the following things that result when a builder doesn’t meet warranty expectations:

• Lost Credibility – Falling short on a brand promise erodes trust. Homeowners feel duped and see the builder as unreliable when unable to honor commitments.
• Decreased Customer Loyalty – Unfulfilled promises (whether legitimate or perceived that way by the buyer) create dissatisfaction and disloyalty. Loyal customers have a higher lifetime value, better retention, and are less price sensitive. You’ve already sold this home. Good warranty management is about selling the NEXT one.
• Negative word-of-mouth – Think about the last time you had a great customer experience. Now think about the last time you had a terrible one. Which one did you talk about more? Bad news travels fast, especially online.
• Weakened Brand Reputation – Every poor review compromises your brand reputation, deterring potential buyers. That means lost market share over time by giving competitors the opportunity to serve would-be homeowners better—just by avoiding warranty mishaps.

The Hidden Headaches of Warranty Management

No builder sets out to do a poor job with warranty management. In fact, they often feel like everything is working until they see the online reviews. Ouch! Research shows a 25% gap between the proportion of brands who describe their customer experience as “excellent” and consumers who agree.

Homeowners today expect speed, convenience, knowledgeable help, and friendly service—four factors that nearly 80% of Americans say define a positive customer experience. Managing warranty claims in-house might seem like the best way to meet these demands. But then the volume of claims ramps up, or you’re short-handed on staff, or homeowners suddenly seem to be expecting more, or any number of other unpredictable challenges occur. Now there are slower response times, a perceived lack of transparency, and more ticked-off homeowners.

This misalignment between expectation and execution is a major issue. Consider drywall nail pops—what homeowners might see as a simple, easy-to-fix issue. As a builder, you know this requires coordinating with trades and, potentially, multiple visits that can take weeks. Furthermore, with cosmetic items like this, the homeowner may be expecting a level of perfection that just is not possible. The homeowner sees an ugly wall and unnecessary delays without understanding why.

What could be a routine repair turns into a homeowner nightmare. Without good communication and builder reassurance, the homeowner feels ignored. That leaves them with two common actions: share their grievances online or lodge a formal dispute. Now magnify the risk for larger structural issues.

Is your current warranty management approach truly doing enough to protect your company?

The PWSC Promise: Protecting Your Reputation. Keeping Homeowners Happy.

In today’s digital world, your online reputation is everything. A few bad warranty experiences can tank your reviews, scare off potential buyers, and give competitors the upper hand. But with the right partner, warranty management can be a positive differentiator instead of a liability.

That’s why many of the nation’s leading builders partner with PWSC. Our comprehensive warranty solutions replace hassle and frustration with hustle and focus when it comes to risk management.

• Insurance-Backed Warranties – Tiered coverage with claims and marketing support from industry experts AND industry-leading insurance, protecting builders and homeowners from unnecessary out-of-pocket repair costs while promoting superior service.
• FirstLink Customer Care – Real-time, white glove, concierge care for homeowners while taking first- and second-year maintenance call burdens off builders.
• Quality Construction Pledge – A modern builder-backed warranty incorporating innovative legal protections and claims resolution protocols that keep customers happy and claims out of the courtroom.
• HomePRO Systems and Appliance Warranties – Extended coverage for the home’s systems and appliances and extended peace of mind for homeowners.

With PWSC by your side, you can focus on construction while we handle the warranty requests. We stake our reputation on protecting yours.