Our straightforward program provides the best possible purchase price to meet the needs of each homebuilder client, without requiring the use of notes or future contingencies regarding resale. In each location independent appraisers determine fair market value of the model home.
We understand that showcasing options in a model home is critical to a builder’s bottom line. Therefore, we work closely with our builder clients to ensure that the appraisal amount includes an appropriate value for options.
Lease Terms & Rates
Under a lease structure that has been approved by major accounting firms, the builder guarantees the lease for one year. The builder has the option to remain in the model for as long as needed after the initial 18 months, with a lease cancellation notice as the only requirement. During the life of the lease, the builder pays taxes, insurance and maintenance.
Fixed rate amounts are negotiated based on current interest rates.
- The builder provides notice to terminate the lease and begins a “best effort” marketing program to sell the property.
- The builder earns a commission on the sales price if it is successful in selling the property.
- The builder does not guarantee the ultimate sale or sales price. The builder is not affected by the outcome of the sale of property to a third party.
- The builder’s obligations under the lease terminate at the end of the notice period or the closing of a sale of the property to a third party.