Abstract
Construction standards and methods for building new homes has improved over the last two decades resulting in significant improvements in energy efficiency, comfort, indoor air quality, and durability of new homes. Despite these improvements, the most common builder warranty for a new home in the United States ranges from 6 months to two years in duration. During the past two decades, manufacturer warranties on other durable goods such as automobiles has increased significantly. This study measures consumer perceptions of extended 12 year new home warranties with a survey completed by 162 adults in the United States. The results indicate that U.S. consumers associate extended new home warranties with greater psychological comfort. The research also indicates that there is greater perceived value among consumers with extended new home warranties along with a willingness to pay for it. This study also evaluates the potential of offering a builder provided home preventative maintenance program. The program would provide an additional service to the consumer and reduce the risk of claims on the extended warranty. This study found a positive perception of a builder provided preventative maintenance program and a willingness to pay for this service.
Recommended Citation
Usher, C. Todd and Burgett, Joseph M.
(2019)
"Consumer Perception and Willingness to Pay for Extended New Home Warranties,"
The Professional Constructor: Vol. 44:
No.
1, Article 9.
Available at:
https://open.clemson.edu/aic-journal/vol44/iss1/9
