Make sure you get everything in writing and make sure to read all the fine print. My brother was to do this in S.C. and it ended up falling through when the builder realized how much it was going to cost him. Just make sure there are provisions for every eventuality that you and your Realtor can think of! Good luck! Cher

Assuming you have done your home and believe the home is worth 300k, it can be a great opportunity. Most builders do a good job to take good care of the home, but make sure you have clear provisions on what they will do with carpeting, paint and any damage to fixtures.

Also, be careful on financing. Some lenders will look at you as an investor, which can change your rates. Bottom line, do your homework and hopefully you have a Realtor on your side making sure there are no loop holes.

Rushkhan,
This is actually a pretty common practice with New Home Builders, especially if they are getting close to closing out new construction in a development. It can work well for both parties involved. If the buyer is not quite ready to move, it allows time for relocation, lease committments,etc. The builder, on the other hand, wants to be assured of a sale on the model once it is no longer needed. However, the builder needs the use of that model home for a short time longer, therefore the lease back. We deal almost exclusively in New Home sales and find this to be very common and often very profitable for the buyer.