PHOENIX -- Selling your house and taking a loss just so you can move is not an idea that would appeal to many, but a Valley developer has come up with a plan they hope will encourage people to move.
“We've just been wanting a new home and in today's market there's no way of getting out of what we've got right now,” said potential new home buyer Jason Stokes.
He and his family are touring a brand new Maracay home in the west Valley, where the home builder is offering a new incentive for people to buy.
It's called the Smart Move Advantage and when you purchase a new Maracay home it guarantees rent on your existing home for up to three years.
“It's the best of both worlds,” said Andy Warren, President of Maracay Homes. “Buyers can take advantage and buy now while values are still low with new homes and take advantage of historic low interest rates then sell their home in two to three years when values are much higher.”
Real estate expert Mark Stapp, Director of the Master of Real Estate Development program at the W. P. Carey School of Business at Arizona State University, said he isn't surprised by the incentive.
“The new home building market is evolving and it's coming back," said Stapp.
And as the foreclosure market dries up and cash buyers compete for deals in the resale market, more and more people are considering new homes.
“Is it a good program? Absolutely. Is it going to be something a lot of people can take advantage of? I don't think so," Stapp said while discussing the Smart Move Advantage.
Experts say this program is perfect for the person who doesn't owe much, if anything, on their current home.
“You still have some practical issues that go with this. One is you are going to have two mortgages,” said Mark Stapp. “Do you want to take on twice as much debt?”
Jason Stokes said he's not worried, he just needs to be sure he qualifies.
“Looks like it will work out for me, it just all depends on the approval and everything and how much they rent our house for because we have to at least cover the mortgage I have now," remarked Stokes.
If you qualify for the Smart Home Advantage plan it does guarantee rent and property management of your current home for three years.
However, it does not guarantee that the rent charged will cover your mortgage since the rent is determined by the market.