Castle Rock, Colo. A home buyer orientation is in progress. Let’s listen in.
Home Buyer: The driveway and the sidewalk to the front porch have footprints in the concrete.
Orientation Rep: There is no warranty standard for footprints in concrete, so the builder doesn’t have to fix that.
HB: These are deep enough to see that they were tennis shoes, there are four or five of them. I want them noted on the list.
OR: They’re within tolerance.
HB: What?
OR: They won’t do anything.
HB: I want this condition noted.
OR: OK, but they won’t fix it.
HB: I want it noted.
The orientation continues. We are now in the kitchen.
HB: Here under the cooktop, the bottom of the cabinet has these big holes.
OR: That’s an unfinished area.
HB: We expect to store pots and pans in this cabinet. These holes are so big items will fall through; they make the space unusable for storage.
OR: They had to cut holes for the electric and gas lines to get through. The inside of cabinets is considered to be an unfinished area.
HB: Did they have to cut the holes with a chain saw? I want this noted on my list.
Several weeks and many phone calls later, the cabinet floor was re-skinned and the front walk and one stone of the drive were replaced. No matter, though, because the original conditions made a sufficiently negative impression with the buyer, and the subsequent conversations reinforced that negativity. The fact that the superintendent would deliver a home with such items betrays the attitude of the company’s leadership: “Why spend time and money making the house right if the buyer doesn’t complain?”
As bad as the delivery issues were, worse was the fact that the orientation rep denied the items. It shows that the company’s focus is on dollars instead of on doing a good job. Ironically, as many have discovered, when you focus on doing a good job, the dollars follow. The approach of this orientation rep is similar to the one many health insurance companies use: Deny the claim and see if anyone complains. Again, the attitude of the company’s leadership shows.
Well, this buyer complained and kept on complaining until corrections were made. How much damage was done to the builder’s reputation in the meantime? Astonishing as it is, studies show customers remember and talk about such battles for more than 23 years.
The larger issue, however, is how to train personnel to make good judgment calls. Decisions and statements your employees make reflect on you, so make certain they understand your position. Begin by acknowledging that judgment calls are essential when working with home buyers. No set of standards or procedures has been developed that covers everything that might happen in a home or in a buyer-builder relationship. Listening, looking, empathizing, thinking, and common sense are all required. Company personnel need training and guidance to make appropriate judgment calls.
Ask everyone on your staff to read your company purchase agreement, warranty and warranty standards, as well as homeowner maintenance responsibilities and trade contractor scopes of work. Discuss these documents, perhaps one at each regular staff meeting over a period of weeks or months.
Have staff members spend time studying the workmanship, standard features, and options in your homes. Trades and suppliers are usually willing to provide workshops to help build your staff’s technical knowledge. Arrange field tours to your own construction sites as well as visits to competitors’ sites. When technical questions come up, take time to investigate and discuss information with warranty personnel.
Use regular staff meetings to discuss unusual situations. Remind personnel to take time to think when they encounter unusual situations. Role play awkward conversations. Attend seminars and programs on negotiating and conflict management. Confidence and good communication skills can defuse many situations. When conflicts with customers occur, conduct a debriefing to identify what the company could have done differently. Involve as many staff members as possible in these discussions.
In addition to training, be certain the company support systems are effective. This begins with sales counselors aligning buyer expectations correctly, construction delivering a complete home, and trades responding to warranty items promptly. When the company operates from a position of strength, buyers respect the entire organization and are less likely to work outside the normal policies.
Conditions such as those that existed in the home I described should be unacceptable in any price range, but because I know you are wondering, the price of this one was nearly $600,000—plus several weeks, many phone calls, and one damaged reputation.
Carol Smith offers customer service assessment, consulting, and training programs for home builders.
