TRCC News
How to Minimize Customer Complaints and Avoid a Bad Reputation
As executive director of the Texas Residential Construction Commission (TRCC), my hope is that cooperation and mutual respect between homebuilders and their customers will reign supreme.
Unfortunately, the reality is that as long as homes are built and bought, builders and their customers will not always see eye to eye. From earnest money refunds to warranty work, disputes unfortunately will arise. However, how builders respond to their customers' wishes and needs is key.
Builders that have been in business for any length of time know the effects of having a disgruntled homeowner. Good word of mouth helps sell houses. The opposite is also true.
Therefore, it is much easier, and often more cost effective, to fix an alleged defect for $300 rather than go through the process of disputing that defect and running the risk of permanently alienating a customer.
If builders address their customers' complaints early, the builder may be able to avoid lengthy disputes. Even if the builder is unable to satisfy a customer completely, the letters and other correspondence exchanged back and forth can help make or break a builder's reputation.
Once a homeowner files a complaint with or requests an inspection from the commission, the homeowner, at the very least, creates a permanent record of a complaint filed with a state agency. State agencies must not only keep those records on file, but also provide copies to anyone who asks for it. That means potential customers, finance companies, realtors and competitors are just a few mouse clicks away from the entire story of how a builder treats customers-even if the underlying issue is unfounded.
But just for argument's sake, let's say a builder declined to respond to a homeowner's complaint and the homeowner filed a grievance with the commission. The commission designed its complaint process to help find a resolution agreeable to both parties. Sometimes that means that although neither party is 100 percent satisfied with the outcome, each has compromised enough to feel as if their concerns were met, at least partially.
When a complaint comes in, the commission's complaints personnel send a copy of the complaint to the builder. This represents the first and best opportunity for builders to get their side of the story on the record and for the ombudsman to evaluate both accounts and see where a compromise might be possible.
We've found that in many complaint cases, the lines of communication simply have broken down between the builder and their customer. In these cases, the commission serves as an intermediary between the parties. Although the builder may completely oppose the homeowner's complaint, not responding does not communicate that position well, nor does it make the complaint go away.
Further, a builder's failure to respond to the commission is actionable by the commission and can lead to fines or sanctions. Responding allows a builder to let his actions speak to potential customers and might lead to a resolution.
In the 2008 fiscal year, the commission resolved 268 complaint cases. Although builders would rather not have any complaints filed against them, the best approach is to respond by giving the commission complete information about the issue. Reaching out to the commission, and in turn, to disgruntled customers, can have a positive outcome and save hundreds of dollars and valuable time.
Again, the commission reminds builders that all complaints are open records available to all potential homeowners. How a builder responds can result in positive marketing. Not responding certainly can hurt a builder's pocketbook, the business and the builder's professional reputation.
