In the current Colorado Springs real estate market, we have EXTREMELY low inventory of available homes for sale (325 active listings as of this writing). Almost ANY home that is listed close to market value is selling in just a few days!
What is the reason for the low inventor?
Home sellers are reluctant to list their home for sale when they don’t have a home to move to! They are afraid their present home will sell very quickly, and they will not be able to find a home they will be happy with in the allotted time period.
Is there a solution to the housing inventory market?
YES! Enter new programs designed to help a seller buy a home BEFORE they sell their current home. Some companies, like Zillow, or IBUY will make you an offer on your present home, usually without having to make repairs or upgrades, and can even allow you to stay in the home for several months. The trouble is, their offer is a “wholesale” price, plus include up to 10% in additional fees. Although convenient, the seller will end up with much less than a traditional sale would net the seller.
A new program with RE/MAX Properties, Inc. is different! It is called Knock Home Swap. A very intriguing program that allows a seller to tap into the equity in their home for the downpayment to purchase their new home. This has been an option for many years, however, the lenders required that you QUALIFY for BOTH mortgages, which made it only suitable for a small segment of the market. The KNOCK Home Swap program is different! The program uses a CERTIFIED Agent (like myself), and a lender certified with the program to structure a purchase BEFORE having to sell your present home! Here is a general guideline of how it works:
- The seller prequalifies with Certified Lender to purchase the new home. They do NOT need to qualify for both mortgage payments!! The seller needs at least 25-30% equity in their home.
- This program is a CONVENTIONAL financing program, NO VA or FHA financing.
- Fees from KNOCK average about 1.25%. There is ZERO interest on the equity you pull out for the downpayment on the new home.
- The lender can also advance the seller up to $25,000 for repairs, fix-up, staging of their present home.
- Once the new home closes, the seller lists their old home for sale with a Certified Agent like myself, to sell at RETAIL, not WHOLESALE! The ultra HOT real estate market determines the ultimate sale price!
- This program also works with NEW BUILDS, and NEW CONSTRUCTION homes!
More details will be coming soon! Although the program has been around for years, it was just recently “tweaked” for the Colorado Springs housing market. I am your CERTIFIED REALTOR for the KNOCK HOME SWAP program! Feel free to contact us for more information!