If a homeowner dreads moving because they will have to list and sell their existing house and then find and qualify for a mortgage on a new house, there is a new real estate program that may make moving easier. The home trade-in program offered by some real estate companies and builders simplifies the moving process. A real estate company such as Reali and a lender join forces to lend the homeowner money to buy a new house while their existing house is sold.
How Real Estate Home-trade-in Programs Work
There are more people moving from one home to another than ever in this changing economy. Some people need to go where they can find a new job, and others are looking for a bigger house for growing families or a smaller house for retirement. Everyone dreads the process of selling their existing house and finding the right new house that must be purchased and financed. The timing is often awkward for moving. What if the closing for the old house gets delayed or the closing for the new house is delayed?
A family can be required to vacate the old house at the closing and find the new house closing is delayed and they have no house to move to for days or weeks. But, the new home trade-in programs simplify the whole process, making it possible to move into the new house before the old house is sold. This program is becoming more and more popular. Now, according to realtimecampaign.com, many experts are recommending this real estate program for people who wish for an easier way to sell their homes and buy new homes.
Home trade-in firm Orchard snags $100M and unicorn status by offering home buyers this type of program. Real estate companies and builders can offer home buyers a program where they essentially purchase the existing home and lend the home buyer money to buy the new home. The real estate company assesses the existing home to determine a selling price. Then they take care of getting the house ready to sell and selling it.
At the same time, the home buyer gets qualified by the lender for a certain amount of money to buy a new house. They find the house they want within that amount of money, purchase it, and move in. The company is financing both ends of the deal. When the old house sells, the real estate company credits the sale price to their client toward the sale of the new house. Usually, the closing of the two houses happens at the same time.
The real estate company often gets a good price for the existing house because they do repairs and staging before putting it on the market. There may not be the flexibility a person wants in choosing the new house in the trade-in program. It is important to understand the details of the trade-in program with each Realtor or builder, as each company has unique rules and program details.
When Is a Home Trade-In a Good Idea?
A real estate company can offer homeowners on the move an easier, less stressful way to move from one house to another. This system offers homeowners peace of mind when they buy a new house before the old house is sold. When a family has to move quickly because of job changes or relocation, this program makes sense.