TRADE IN PROGRAM
One of the biggest friction points our clients run into when building a new home is having to sell their current one. Trying to find a place to rent can be a challenge—let alone having to move twice.
We get that move-in day can be difficult when your new home is complete, especially when considering your current lease terms, as well as communicating with movers and lenders. We believe that our new program will not only help give more flexibility, but also make the entire pre-construction, building process, and move in day a seamless experience. Below are some of the details of how we are envisioning the program to work.
When selling a home, you are generally going to pay the listing agent’s commission (3%), the buyer’s agents commission (3%), and most buyers expect you (the seller) to pay the closing costs (3%). Not to mention all of the work and cost it takes to get the house ready to sell. If you have ever sold a house before you know that no matter how immaculate your home is there will always be something that comes up in the home inspection that will make the buyer want a credit or repair of some kind. Between getting your home ready to sell, real estate commissions, closing costs, and repairs the total comes out to be at least 10% off the top of whatever price your listing agent is able to get for your home.
OUR PROCESS
Assessing the Home:
FGB would tour the property to ensure your home is eligible for trade-in. Variables include location, repairs needed, and resale.
Fair Market Value:
After establishing that your home is eligible for the program, we would complete a market analysis to confirm the value of your home. We do this by collecting comparable homes (size, location, finishes) that have sold in the past year.
Purchasing the Home:
We would make an offer to purchase your home at a discounted rate from fair market value. This discount is to recoup costs that would traditionally be associated with closing costs, realtors fee's, lawyers fees etc. Once we have achieved an agreement a formal Purchase and Sale Agreement will be drafted.
Agreement:
During the process of agreeing on a purchase price we will also discuss the rental rate for the property. This rate will be achieved through a combination of reviewing market comparables and covering costs associated with managing the property. The lease agreement will be a modified gross lease, in which you would continue the responsibilities of cleaning, maintenance, and repairs. Once agreed upon, we move forward with the purchase of the home and the signing of the lease.
Building
Once construction loan is secured, FGB will begin building your home. You will be able to move into your new home without the worry of breaking your lease or fees associated with leaving early.
PROS VS CONS
✔ You would not have to get your home ready to resell (cleaning, staging, landscaping, etc).
✔ You would not be inconvenienced by showings of your home when it hits the market.
✔ You would not have to move twice.
✔ You would not need to worry about repairs requested by the buyer.
✔ You would be able to move directly into your new home without the hassle of dealing with a rental agreement (early termination or extension.
Since your rental agreement would be with a company (434 Realty Group) that is affiliated with Frank Good Builders you would have flexibility on your move in date.
✗ You could possibly make more money by listing your home on the market.
Let’s build.
If you have any questions, are ready to get started, or simply want to get in touch with our team, please fill out the form on our contact page. We’ll reach out shortly!