With historical low interest rates, many say now is the time to buy a home.
But as homeowners have watched their home values drop, they may be on the sidelines because of an inability to get the money they want out of their current home.
So Valley-based Maracay Homes has rolled out a new idea they hope sparks people to become buyers once again.
Dubbed the Smart Move Advantage program, it provides qualified buyers with a set rental income on their current home for three years.
“We just recognize there are these thousands of people who really want to take advantage of the once-in-a-lifetime buying opportunity that exists now, but they’re choosing not to because they feel it’s not the right time to sell,” said Maracay President Andy Warren. “We think it’s a creative solution to a problem thousands of potential customers are facing.”
Home buyers must qualify for a new home loan based on the fact that they already own an existing house. Working with a property management company, they’ll be told how much comparable homes are renting for in their neighborhood and then given an amount their home would rent for.
Warren points out that there is no guarantee that the rental income will cover their existing mortgage since people with the same house on the same street may be paying different amounts.
Once the potential buyer is armed with the information, he or she can go back to Maracay to decide whether or not to move forward with a purchase.
“There isn’t any catch. We’re working with Smart Move Advantage the way we would with a Realtor. We compensate them for their involvement in that transaction. Then, they are taking on those risks and managing the property with the homeowner,” Warren said. “When people get that, they realize, ‘This is exactly the service I need.’”
Since the program fully launched in Arizona at the end of August, Warren said there has been more traffic on the home builder’s website and at its developments. “A couple dozen” potential customers are going through the process of the rental analysis right now and four have completed purchases.
The program can be used for an inventory home or a new build, he said.
Maracay has several developments in the East Valley, including Mesa and Gilbert. Its newest East Valley project, Montelena, opens Sept. 29 in Queen Creek at Hawes and Ocotillo roads. In the next few months, its Eastmark location in Mesa and Lyon’s Gate in Gilbert will open, as will The Bridges of Gilbert.
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