By: Staci Cool, RWC Account Executive
The ebb and flow of our real estate market can be quite an exhilarating ride thanks to the rules of unpredictability. This frequently changing industry certainly keeps us all on our toes from day to day. Many of us likely relate to the shuddering uneasiness we feel when reminded of the market crash in our, too-close-for-comfort, history.
For those that were able to survive the crash, an appreciation for what it takes to persevere through crisis was gained. Given this shifted perspective, many companies have opted for conservative growth by avoiding top heavy investments and forgoing extensive financial commitments. Despite the need for more housing, builders are taking their time to expand and carefully considering overall financial health as paramount.
Futuristic goal setting is not a new concept; however, it has taken on a new form due to these economic influences. Together, both historical reflection and a healthy outlook are necessary in order to create a well-honed vision for the future. Historically speaking, when was the last time you considered how much has changed from the day you started your business? How many homes did you start out building or remodeling and where are you today? What are your company goals for 2019 and beyond?
Whether it is a personal choice or an economic shift that has pushed you to grow, arguably, your business probably looks nothing like it did the day you first opened. Perhaps growth isn’t in your immediate future and you are considering reducing your inventory as you are looking forward to retirement. Regardless, with these decisions there are numerous considerations to be taken. Everything from staffing requirements to pricing of materials can determine the feasibility for implementation of your plan.
One area that is often overlooked is how your warranty options are stacking up to your needs. Residential Warranty Company knows that finding your glass slipper may require trying on everything in the store. For this reason, we highly recommend doing an annual or, at most, a bi-annual, check-up to review where you stand.
As an example, a recent builder partner contacted us to advise that they were experiencing a major growth spurt. Their current projections far exceeded the plans they originally communicated to us the year prior. Originally, they were using a full coverage warranty on just a few USDA homes per year. It was thought that they would replicate this initial predicted growth for the upcoming 12-month forecast. However, it was quickly discovered that their warranty coverage requirements had to be reevaluated. Through the discussion it was determined that they were now able to qualify for additional options within our library of products.
What this can mean to you depends on where you are headed. Perhaps you have decreased/increased your price point or have grown/dropped in the total number of homes you plan to build. It is especially important to communicate with us if your projections indicate you will warranty 20+ homes per year or need to cover $2 million+ dollars in business annually.
Maybe you have decided to introduce a new remodeling division, we have several options for remodeling warranties which mirror your state requirements. If you have added a brokerage or are selling aged spec homes, our family of products includes after-market appliances coverage and a true structural coverage warranty. Perhaps you want to price out our general liability insurance before your next renewal, a quote for comparison may be obtained at any time. These membership perks are available at no additional cost to you. Utilizing your membership to its fullest extent, by communicating your needs frequently, can shed light on any untapped resources which may be available.
In conclusion, it is not a secret that your business will change from year to year and decade to decade. However, pinpointing exactly what can happen and when is not a perfect science. Our goal is to collaborate with your business to create an optimal growth plan which aids in your success. Even though the Spring rains are meant to help create a beautiful landscape, sometimes there are floods. Properly implementing all available options for financial protection will allow your business to fully blossom.
Have your needs changed? Get connected to your local Account Executive by calling us at 800-247-1812 and asking for the Sales Department. We are here to help!
Is there a subject you would like to see highlighted in an upcoming newsletter? Do you have a burning warranty question or a desire to learn more about a specific real estate related topic? Even if it is a simple question on a process or a suggestion for a topic, we would love to hear from you. Send your feedback and requests to: Info@rwcwarranty.com. Don’t be shy! If you are curious or want an answer, odds are, so do some of your peers!