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We have been in our home ten years and there is a new phase of homes being built in our development which are larger for our growing family.
The developer mentioned to use that they just started using a program called MarketPlace Homes, which will act as your seller agent with only a 1% commission. They also will lease your home if the home doesn't sell by the time your NEW home is built for up to six years - guaranteed.
So there has to be a catch right? I assume that they may force me to sell at a much lower price than what I would want to.
Also, I have a VA loan tied up in the current house. I'm concerned that I wouldn't be able to finance the new house until the current VA loan is released (either sell, assume by a vet or I think it's possible to use the home as a property investment, but those details are little fuzzy).
I would like to here some realtor opinions and any sellers that have used the program. Thanks!
For their program to work, you cannot obtain your own representation to purchase the new home. If you want someone representing you and your best interests, you won't be able to use this program.
They are able to only charge you 1% for the sale because they will receive the 3%, or whatever your market is doing, for the remainder of the fee. They aren't doing anything for free. Also, don't forget you need to pay the buyers' agent as well, so add that on top of the 1%. Many people don't understand that.
As far as I know, you can only purchase a home with a VA loan if it is your primary residence. That said, you are allowed to purchase a property with up to 4 units BUT you have to live in one as your primary residence. So, investment in a sense.
About assumable...the saying is there always has to be a veteran on the hook. So a veteran would have to be on the VA loan. But why would someone assume a loan? They'd still have to qualify for that VA loan.
As far as this company do a search using your preferred search engine. Enlightening.
As far as I know, you can only purchase a home with a VA loan if it is your primary residence. That said, you are allowed to purchase a property with up to 4 units BUT you have to live in one as your primary residence. So, investment in a sense.
About assumable...the saying is there always has to be a veteran on the hook. So a veteran would have to be on the VA loan. But why would someone assume a loan? They'd still have to qualify for that VA loan.
As far as this company do a search using your preferred search engine. Enlightening.
Thanks for the advice. As the old saying, "if it's too good to be true then it probably was".
I don't know anything about them, so I don't know if this is what they are doing.
There are some investors out there that specialize in getting control over a property for very little investment and then selling it on a lease option, with very little concern about who they lease it to. They get the nice fat option fee and if the buyer doesn't make the payments or trashes the house, it is no skin off their nose.
If there is a foreclosure on the "buyers" who don't make their payments, it will be on the property's actual owner, which would be you.
I'm just suggesting that you be cautious about someone who wants to take control over your property for six years which includes the right to sell it.
I just thought I would update my experience with MarketPlace Homes (MPH) after a year.
So as a refresher, for a home buyer who is having trouble selling their home when wanting to buy a new construction home, MPH acts as your buyer agent and works with the builder. They will guarantee lease payments on your current home for up to 70 months. They will also act as your lease manager working to bring in a tenet (background checks, payments, etc...). If the house is not leased, you will still receive the lease payment as well as MPH taking care of the yard, snow removal and utilities as the house sits empty. Lease is year to year with an option for the lessee to purchase your house or for the owner to cancel after each year.
Last year the housing market for existing homes in my area was soft. So I approached MPH. Everything worked smoothly with my builder. It worked out well since my new home was close to my old home, so when I moved it, there wasn't a big rush. MPH sent me a sign and a key lock to put on the door. Potential lessee's look at the home while on the phone with a MPH agent. I had several lease offers even before I had completely moved out! I did have to pay the first two months house payment, then on the third month I started receiving the actual rent payment. After the first year, MPH will keep $100 a month. But they also raised the rent for the second year $50, so my net difference is now $50.
The current lessee's are an older professional couple who just renewed the lease for a second year. They take very good care of the house. I'm making a nice income off the extra lease payment over my house payment, which more than covers the difference in price for my new mortgage.
So now I have the option of staying with MPH until 2020 then I can sell the house or keep leasing on my own or with MPH but the guarantee ends.
If you find yourself in a similar situation, I highly recommend MarketPlace Homes.
They were hired not to sell the house, but to obtain a renter and guarantee the rent payment so the OP would qualify for their new loan. The brokerage also collected the buyer's agent fee, when the OP bought their new home.
Location: Stuck on the East Coast, hoping to head West
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Quote:
Originally Posted by 2bindenver
They were hired not to sell the house, but to obtain a renter and guarantee the rent payment so the OP would qualify for their new loan. The brokerage also collected the buyer's agent fee, when the OP bought their new home.
They were hired not to sell the house, but to obtain a renter and guarantee the rent payment so the OP would qualify for their new loan. The brokerage also collected the buyer's agent fee, when the OP bought their new home.
Perfect summary!
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