Builder Warranty Lacks Customer Service

First of all, I would like to apologize up front for this blogopotamus.  But I believe that information is power and can help reduce the amount of wasted time and frustration on the part of new homeowners, especially when dealing with warranty issues. 

Not all builders are created equal and that is also true when it comes to their warranty departments.  In fact, I can almost predict the types of issues that my Clients will face when it comes to dealing with the builders’ Warranty Representatives.  It appears to me that many builders have perfected the art of the run around.  Let me walk you through a typical scenario (one that I hear repeatedly from my Clients).

It starts even before closing.  Usually the final walk-through is where you’ll first meet your Warranty Representative. However, in many cases he’s nowhere to be found and the Superintendent performs the final walk-through in his place.  Although the Superintendent is probably more qualified to do the walk-through than the warranty guy (because he knows the house better than anyone else), he will most likely be gone (on a different project or even a different company) when the warranty is about to expire and repairs are to be performed.

During the final walk-through, you will walk through the house, make notes and put blue tape (sometimes green) on cosmetic dings and scuffs that you want to have repaired before closing.  The Warranty Rep or Superintendent will go over warranty paperwork, such as repair work request forms and contact information. In the few days after the walk-through but before you get the keys, the builder is supposed to have a work crew finish all of the items on the punch list.  Many times, I find that the work crews will remove the tape without actually making any repairs or they will just leave the tape and act like they can’t see it.

At the time of the walk-through, you need to make sure that you read and understand your warranty, as different items go out of warranty at different times.  For example, easily damaged items such as tub and shower finishes, window films, counter top finishes and so on may only be covered for a few weeks.  The reason they are only warranted for a short time is that the builder does not want to make repairs on items that are damaged by the homeowner.  That makes sense to me.  I agree that they should not be held liable for damage they didn’t cause. 

However, this is a situation that you need to pay close attention to.  Often, these areas of minor cosmetic damage will be pushed off by the warranty guy.  They will say things like "oh we will take care of that at the one year point".  When one year comes, the warranty guy will have selective memory and say "that is out of warranty, you should have told me when we were at the walk-through" and then refuse to make any repairs.  An argument ensues, your blood pressure goes up and still no repairs are made.

I suggest that you make sure to keep all the the paperwork your builder gives you (punch list included).  If you have a digital camera, bring it to your walk-through.  If you don’t have a camera, buy a disposable one.  At the end of the meeting, take pictures of every room of the house as well as the outside of the house for a visual record of the blue tape locations.  Have the pictures developed or print them out.  Compare the pictures to the house after the builder says they have completed the punch list.  You may be amazed at how many so called repaired items have been untouched.  At a minimum, you will be sending a message that you intend to follow up on the repairs and expect them to be done.  If you ask for repairs such as the ones I described earlier and you get the "we will do it in a year" comment, have them put in in writing or insist that they do it now.   

Another common complaint that I hear occurs at the one year mark.  You have identified the repair items and now it’s time to have them repaired.  Why does it take 12 appointments and 8 no shows to get a stupid drywall crack repaired?  I’m convinced they do it so you will get frustrated and forgo many of the repairs.  I know from my own experience that it takes the drywaller several attempts to fix a simple crack and an equal number of tries for the painter to match the paint color (white).

It’s also common for the builders to rotate their warranty guys between subdivisions.  That means the representative you started with (at the walk-through) is not the same guy you will be dealing with at the one year mark.  This makes it easy for them to play stupid by having no knowledge of ongoing problems.  This is another reason you should put all communication in writing.

Now I know it sounds like I’m ripping into the builders.  I am.  But in all fairness, not all builders are bad about the warranty process and repairs.  I’ve had many Clients that have had positive experiences too.  Unfortunately, I hear the stories of poor customer service much more often.  But if you enter the process with an idea of what problems may arise, you can head many of them off.

I definitely suggest that you hire a professional Home Inspector for both the walk-through and the one year warranty.  Home Inspectors have the training and the knowledge to fully evaluate your home and find areas that are in need of repair.  We will also go into the places you can’t, like in the attic and on the roof.  It is common to find serious defects in both of these areas.  Improper roof flashings, unfinished stucco walls, broken trusses and improperly installed heating and cooling systems are just a few of the defects I see in brand new homes on a regular basis.  In fact, one time I found a brand new house with no insulation in the attic.  How would you like a thousand dollar cooling bill the first month after you move in?

Be sure to catch all of the problems in your new home and make the builder fix them before your warranty expires, so you don’t have to pay to fix them yourself later!