We might be
willing to take your home in trade.
Requirements:
You are trading up in value & we have surplus inventory.
What could be nicer than
eliminating the need for you to sell your home before you
could buy. You wouldn't have to deal with the
showings, there wouldn't be concern about whether it would
sell in time, the issues regarding possession and possibly
having to move twice. There wouldn't be the need to find
a realtor and go through the process of listing your home.
It can all be done in one step.
Here's how it
would work...
First you would need to
identify the home, townhouse, or condo you want to purchase
from us so we can establish the purchase price, and write up
the earnest money agreement which would be contingent on us
purchasing your home.
Second, we need to set the
market value for your home. This would be done by
evaluating some comps in the area, ordering an appraisal,
county assessment, or a combination of the three. We
would need to inspect the home and come to a mutual agreement
with you about the price.
Third, we would take the value
that we placed on your home and subtract any loan balance
remaining, and then we would subtract a 10% resale cost (we
will have to pay 6% commission when we sell your home, and
approximately 3% in real estate excise tax, escrow fees, &
title insurance. These are all fees you would incur
selling the home yourself.) What is left is your equity
and this is the amount that would be credited toward the
purchase of the new home.
The transactions would be
contingent on obtaining financing for both transactions unless
there was sufficient equity.
Here is an
example: (This is only an estimate, buyer should consult
a lender for his/her actual closing costs.)
John Smith
wants to purchase a townhouse for $140,000. He has a
home with a loan balance of $56,000 and we have together
established the home to be worth $120,000.
|
Credit
to Smith |
Charge
to Smith |
|
| New
townhouse |
|
$140,000 |
|
| Home
trade |
$120,000 |
|
|
| Resale
costs (10%) |
|
$12,000 |
|
| Remaining
loan balance |
|
$56,000 |
|
| Balance |
$120,000 |
$208,00 |
|
After
subtracting the credits to Smith from his charges we come up
with $88,000 still owed by Smith. He will need to
get a new loan on the townhouse of approximately $88,000.
If he wants to pull some cash out he will need to increase the
amount of the new loan he obtains.
After the loan
is obtained there will be a simultaneous closing of the two
properties.
*Prices, fees,
& credits are an estimation only and are subject to change
without notice.
|
