Sell and Stay Programs Near Me
Are you dreaming about buying a new construction home, but the nightmare logistics of selling your existing home are holding you back? Well, worry no more! There can be a solution for your existing home to make buying a dream new construction home as simple as possible.
A Sell and Stay program is a type of home sale that allows the homeowner to sell their home and stay in it as a renter for a set time. This can be a good option for homeowners who need to sell their homes quickly but don’t want to move out right away. Waiting for a new construction home to be built is one excellent reason. Another can be timing relocation until school ends or a new job starts.
Shopping Around For “Sell And Stay Programs Near Me”
When you look for sell and stay programs, you will find everything from big box iBuyers to companies that buy homes. Though these programs each have unique terms and nuances, overall, the homeowner sells their home to an entity. Then, the entity leases the house back to the homeowner for an agreed-upon time. Conversely, the homeowner can sell their home to a private buyer who lets the homeowner stay in the home as a renter during a contracted “sale-leaseback” period.
The Stress of Timing It Right
Understandably, timing your home sale around building a new home is stressful. Many real estate agents need help to make their client’s dreams come true while trying to sell their homes at market value to fund the new construction home’s down payment. Selling too quickly or too late causes problems either way. The seller is stuck paying two mortgages or left without a home for a season.
Tougher Loan Eligibility Standards
After the housing crash of 2009, lenders have been understandably careful by tightening lending standards. Higher credit scores, which examine credit card utilization rates and more, are required to qualify. Records of nonpayment, foreclosures, bankruptcies, and other adverse financial situations can make it more difficult for a person to qualify than in years prior.
For this reason, lenders often want a financial guarantee before they approve a home loan. In addition, builders see a contract that depends on a home sale as a risk. This all means that having a solution for your first home — namely, tapping into its equity — makes buying a new construction home much more straightforward.
A Solution For Your First Home
So what can you do if you can’t make an all-cash offer? Do you sell your home first and live in a hotel for months until your new home is ready? Or, do you tough it out back at your parent’s basement? Either way, you’re also spending money on self-storage or expensive mover’s storage. As a homeowner, you have no time for extra nonsense, especially if pets and small kids are in tow.
Thankfully, there are sell-and-stay programs near you that can help you get the money you need to buy a new home and stay in your existing home as a renter. You don’t have to move all your stuff, and you don’t have to drop thousands on the hotel life (plus takeout and expensive restaurant food). You’ll also get a fair offer to buy your house and get the cash you need in hand to close, which boosts the confidence of your builder and lender.
Sell And Stay Programs Near Me: How It Works
A sell-and-stay program allows you to tap into your existing home value without moving out until your new home is complete. The company that buys your home converts your home equity to cash by purchasing your home and letting you stay as a renter.
If you choose to do this through Marketplace Homes, you can lease your home as long as you’d like. We also ensure that you have the freedom to back out if you change your mind. At any time, you can repurchase your home or request Marketplace Homes to sell it through our designated sale-leaseback program.
After you sign up for our Sell & Stay program, we will front you 80% of your home’s appraised value. Live in your home as a renter and enjoy a flexible housing timeline on your terms. We will give you the remaining 20% after your sale-leaseback is over and we sell your home.
If you choose to stay the course and move out when you’re ready, Marketplace Homes will sell your home on the open market and give you the remaining 20% of your home’s appraised value.
Pros and Cons of Sell and Stay
There are a few things to remember before you decide to use a sell-and-stay program. It’s important to consider all the positives and negatives before deciding if this kind of solution is right for you. Here are some of the pros and cons of sell and stay programs:
- You get cash to close and boost lender and builder confidence.
- Eliminates the pending home sale clause in the contract, which builders and lenders prefer.
- You can stay in your home and remain in familiar surroundings instead of uprooting and living in a hotel and putting all your belongings in storage.
- Times your move just right to make seamless transitions for school, work, and other personal reasons.
- You can use the cash from your home sale to pay off debt and make other significant financial choices.
- The company or buyer must approve of your home for sell and stay. If you don’t have enough equity, it may not work out. However, you can explore other options like Guaranteed Lease if you don’t have enough funds locked in your home’s value.
- You’ll have to pay rent to the company or buyer who purchases your home, which may be based on market value, making it higher than your old mortgage.
- Depending on the company buying your home, you may be limited to a fixed lease term.
- There may be closing costs and other home-selling fees.
- Some programs just buy your house and do not give you the option of trying to sell on the open market. (On the other hand, Marketplace Homes does give this choice).
The decision to participate in a sell-and-stay program is a personal one. If you’re considering this solution, it’s good to know the pros and cons to make the best choice for your unique situation.
Get a full-picture evaluation to see if Sell and Stay is right for you.
Finances come in all shapes and sizes. Unlike lenders, Marketplace Homes can assist people with a wider range of credit histories and income types. Give us a call and let us know your situation, and we can find the best options for you.
Alicia Persson is the the real estate content writer for Marketplace Homes. She has several years of experience working in real estate teams that specialized in investments and property management. Before she joined MH, she was a freelance writer for 7 years, providing real estate and home living content for boutique digital marketing agencies.
She is a proud University of Virginia Masters graduate and enjoyed her undergraduate years at the University of Mary Washington. When she is not writing, she is playing keyboard in a local 90’s band in central Virginia or spending time with her amazing family.