Homeowners looking to sell and move into a newly constructed house now have the option to bypass the traditional home-selling process and receive a guaranteed buyout of their existing home.
Livonia-based Marketplace Homes is now offering homeowners who purchase a new construction home though them, the company will provide a guaranteed buyout for their existing home. The new and former home will close back to back.
“It’s a great time to buy a new home, but when families want to build new, they face a real problem,” says Mike Kalis, CEO of Marketplace Homes. “If they sell their old home too soon, they could find themselves waiting six months or more before their new home is built. If they wait too long to sell, they may have to fight the clock to get their home sold in time.”
Kalis says the homes that best fit the program are priced between $50,000 and $150,000. He says the program eliminates the hassle of house showings and allows the owner to take as much time as they need to move out of their home.
“The typical buyout will be about what a homeowner would net out with a traditional agent,” says Mike Kalis, CEO of Marketplace Homes. “To put it simply, most offers will fall at about 90 percent of fair market value, but there will be no real estate commissions attached. If a homeowner thinks they can sell their home for more, and they receive an offer for even one dollar above ours, we’ll simply tear up their agreement.”
Marketplace Homes has secured an undisclosed credit line from Dwell and B2R Finance, part of the Blackstone Group, and will use the funds to purchase homes from Marketplace clients.
“This new partnership, with one of the largest private equity firms in the (United States), means our team has the backing to provide a hassle free closing,” Kalis says. “Marketplace Homes currently has interests in more than 2,000 single family properties throughout the country (total value of nearly $300 million). We’ll use the funds from B2R to continue to expand that portfolio.”
According to Realtor.com, the average home sits on the market for 66 days, and a large amount of transactions fall through. Meanwhile, nearly 20 percent of new homes built in the United States are canceled by the original owner, often due to complications with selling their existing home.
Marketplace Homes, founded in 2002, has operations in more than 30 markets across the United States.