How to builder trade ins work? Is it a good deal? Are any willing to do this?

Asked by Barbie, 60564 Thu Oct 9, 2008

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Greg Zaccagni, , Illinois
Sat Oct 11, 2008
I think it can be great for all parties. The builder is likely to offer you somewhere around 95% of the appraised value for your home. In exchange you don't have to pay a realtor comission which could be even more plus you both know for certain the transaction will close - subject to financing (that's where I come in).

Find a builder home you like (that's more expensive than your existing home) and tell the builder you would purchase it if they agreed to buy your existing home. Make certain you are talking with someone capable of making that decision and if they turn you down, move on to another builder. What have you lost but some time?

Here is a link to an article on this subject I hope you find helpful.
http://money.cnn.com/2007/06/04/real_estate/builders_taking_…
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Don McComb, Agent, Lake Geneva, WI
Fri Oct 10, 2008
Barbie,
In this market, most builders are more interested in cash flow. Many builders currently have an inventory of new homes and are not in the business of selling existing homes. Generally speaking, this is a good time to purchase new construction because many builders are offering incentives and price reductions. To sell your current home it is necessary to have it in excellent condition, priced right and marketed by a Real Estate Professional.
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Michele Nixon, Agent, Naperville, IL
Thu Oct 9, 2008
Hi Barbie,

Trade-ins from builders occur when you're purchasing a new home from them. They come in various forms but the gist is that they will buy your home if it hasn't sold by the time you close on your new home. Sometimes they will give you a pre-determined price at the beginning. Sometimes they'll do an appraisal or two along the way.

The downside is the price offered by the builder is often far less than you would get selling the home yourself. There are a lot of questions to ask yourself and a willing builder that will determine if this is a good path to go down.

Not all builders will want to get into the business of marketing pre-existing homes but, in this market, you may find a few builders who would be interested.

Click the link below for more information. If you have any further questions, comments, etc., don't hesitate to contact me. Good luck!
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