I can see new home trade-in programs continuing to expand. More here.
Scottsdale-based Camelot Homes has joined a home trade-in program offered by ERA Real Estate that guarantees the buyer’s existing home will be sold at 90 percent of the appraised value or higher.
Nearly 100 homeowners used the trade-in program and all the homes were sold before ERA had to buy them, Estavillo said.
ERA’s trade-in program requires sellers to pay for a home appraisal and an inspection that would identify needed repairs.
The sales price is set and then reduced at scheduled intervals. After six months, ERA would buy the home at 90 percent of the appraised value.
That 10 percent amounts to an on-paper loss of $40,000 on a $400,000 home. But the trade-in program ensures that a buyer can move into his or her new dream home.