If you’re browsing for a new home but are confused as to how to make the home transition work, a trade-up program might be exactly what you’re looking for.
What do we mean by “trading up”?
Without getting into all the specifics, trading up is a great way to ease the transition when you and your family are between homes. Throughout this fairly simple process, you’ll work with a homebuilder who will agree to buy your home and list it on the market in exchange for you signing a contract for a home they’re building.
What you don’t have to deal with:
- Realtor struggles
- Juggling two mortgages
- Finding a temporary home after your first home sells
- Securing a bridge loan
- Paying costly and continuous storage facility fees
How does the process start for a current homeowner?
The homebuilder will typically offer an extensive portfolio of floor plans to choose from so you aren’t signing the contract blind. Then the homebuilder will present you with a buyout offer for your current home. Only after you decide on the specifics of your new home will you be required to sign the contract.
What if the new home isn’t completed when the old home is sold?
If your old home is sold, and if you have to give possession to the new owner prior to the new home’s construction is completed, the homebuilder will most likely offer a transitional home like an apartment. This is obviously subject to availability, but due to the contract, they aren’t going to leave you out in the cold without a home!
How much will the homebuilder buy my old home for?
Typically, the buyout offer is around 80-85% of the determined home value. While this may initially seem discouraging, keep in mind that there are plenty of other fees you’re avoiding by taking advantage of the smooth transition into a brand new home.
What you have to do to qualify for the trade-up program?
Keep up with your current bills!
You need to prove that you’ve continuously paid your mortgage payment for an extended period of time. Because of this, trade-up programs are best suited for those who have already owned a home for at least several years.
Taking advantage of a trade-up program is a fantastic way to reap the most value out of your current home while making the move into the home of your dreams as simple as possible.
Read the details about Reinbrecht’s No Stress Trade-Up Program today to see if it’s the right move for you and your family!