The orientation had progressed as far as the kitchen. The bottom panel of the stainless dishwasher had a severe dent. The builder’s rep made no mention of it. About halfway through the demonstration of the kitchen items, the home buyer noticed the damage.
Buyer: Oh, the dishwasher is dented, look at that!
Builder rep: Oh, I knew about that. We’ve ordered a new bottom panel for it.
Buyer: Do you think we need to write it down?
Builder rep: That’s not really necessary—the part’s already been ordered.
Leading the way to the next room, the builder’s rep did not see the buyers make eye contact. The wife rolled her eyes; the husband just shook his head. About 15 minutes later the conversation was repeated, this time in the two-story entry.
Buyer: Can you see the crack in the top of the window above the door? That’s the second window that’s broken. I’m worried that something structural is causing this.
Builder rep: Yes, I knew about the crack. In fact, I’m the one who broke it. The first one got broken when a ladder fell against it. When we put the replacement in, I was up there tapping it with a hammer because it’s a tight fit, and I guess I tapped it a little too hard. But there’s nothing structural going on.
Buyer: Do you think we need to write it down?
Builder rep: No, the new one’s on order. Should be out in a few days. (Looking at consultant who is observing.) I shouldn’t have said that in front of you, huh?
Consultant: Since you brought it up, I would prefer that the dishwasher and window were both documented.
This provoked more eye rolling and head shaking from the buyers, this time in full view of the builder’s rep. But the rep did not notice because he was writing. Once the orientation was completed, the buyers departed.
Consultant: I’m curious, since you knew about the dishwasher damage and the broken window, why didn’t you point them out to the buyer and write them down?
Builder rep: It’s not our policy to point things out. We believe that if we call attention to things like that the buyers then get focused on them. They look closely at the repair and we can end up with more issues. We fix a lot of things that buyers never mention—things that we see—but there’s no reason to get buyers studying them so closely. Besides, if the list I make is too long, the super doesn’t get his bonus.
Consultant: That’s a shame, but I’m not sure he deserves a bonus.
Establish Trust. The thinking behind this don’t-point-anything-out approach is defensive and short-sighted and puts trust at risk. From the buyers’ perspective the dishwasher and window items could easily plant a doubt about the company’s honesty. They may wonder—with no possible resolution—what would have happened if they had not noticed the two items.
Trust in the orientation rep is critical to a successful home delivery. Whether the orientation is conducted by the super, warranty rep, or someone from the main office, the buyers should leave believing the rep looked at the home with them. Meeting the buyers at the street upon their arrival and ending introductory comments with “I’ve noted several items that I found. I’ll point them out as we go through your home” will build this trust. The problems that arise when a buyer looks closely at a repair are minor compared to the problems a builder can face if trust is destroyed.
Further, by taking a proactive approach, the company establishes that it sincerely intends for the home to meet company standards. As a result, denying attention to an imperfection that is within tolerances is easier.
As to the super’s bonus: Many companies have discovered they can successfully delude themselves by playing interesting games with the number of items at orientation, such as deferring repairs to the 30-day visit or giving the super a separate list of items to complete. Then there’s the multiple-walks approach wherein the builder walks the home the first time to make the list and several days later walks it again with most of the items complete. To get a sign-off, they tell the home buyers they can only close when the list has been signed off. If a family’s furniture is waiting outside in a moving van, they sign the list and hope for the best.
Another way to keep the list “short” is to dot drywall, paint, and cleaning items, sometimes using different colored dots for each category. Any item that gets dotted is considered to have been documented already and therefore does not need to be listed on the orientation form. The list the office gets has a handful of items; the actual list would run to dozens of items.
Sad as it is to see builders play these games with their buyers’ trust and confidence, even sadder is that these companies actually believe they are delivering complete homes. This foolish game may fool the office but the buyers know the truth. You can tell by the way they roll their eyes and shake their heads.
Carol Smith offers customer service assessment, consulting, and training programs for home builders. She can be reached at csmithhomeaddress@att.net.
