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What guaranteed equity means.
Buyers usually need to obtain and use the equity from their existing homes before they can purchase a new home. To help, some builders offer guaranteed, or assured, equity programs. As the name implies, this guarantees that the buyer will receive the fair market equity from their old home. The names and terms of these programs vary by builder. Assigning an equity value to your home. Many factors are considered to determine the value of your home, beginning with an inspection by a representative from the builder or real estate company offering the equity program. A thorough market analysis will then be made on comparable homes which have recently been sold or settled, and competing homes that are for sale will be researched. Other sources used to value property include multiple listing service prices, tax records and discussions with real estate agents who work in your neighborhood. Participating in a guaranteed equity program. The basic terms provide that the home will be marketed for a set number of days, usually ranging from 120-180. Listing prices are established by you and the representative for the program and are modified at previously agreed upon intervals. When the home is sold, the owner will receive a guaranteed amount of net equity. Not all homes are accepted.
After the research is completed, it is evaluated to
determine whether the home is eligible for the
guaranteed equity program. This evaluation includes,
among other things, the home's location, size, age,
condition, lot size, curb appeal, style, and marketability
in comparison with competing properties. Other
considerations are the amount of equity in the home
and any improvements which have been made. |
Getting top dollar on your old home.
To maximize the price you can ask for your home, a list and estimate of repairs and improvements that will increase its value will be recommended to you. Of course, the cost of these refurbishments should not exceed the increased value of the home. To add further value, a warranty is required to be offered which provides comprehensive coverage of major systems and appliances. This enhances the value of your property by protecting your buyer against unplanned repairs and expenses. This would be a cost to the seller. Additional advertising to increase the number of perspective buyers. Your home will be advertised in major newspapers and direct mail flyers, and a sign will be placed in the front yard to attract buyers and make it easier for realtors to find you. What does guaranteed equity allow you to do? With a guaranteed equity program, the purchase of your new home is assured. So you can proceed with purchasing your new home, from choosing the homesite and delivery date to selecting the flooring and color scheme. There will be nothing in the way to delay construction or your ownership.
Choosing a builder who offers this program takes
the uncertainty out of selling your existing home. And
since you'll be assured of the equity you need to
purchase a new home, you'll be free from worry and
delays.
 763-780-2944 info@tjbhomes.com |