Preconstruction Sales programs Save & Exit
One of the main reasons for owner occupants to shy away from buying preconstruction properties is the time of the delivery of their new home. For a typical homeowner, it becomes very difficult to wait for few years to take possession of their property or qualify for two mortgages. The other group of the pre-construction investors are renters who are looking to see their home ownership dream come true in the near future. Since this group is used to living in temporary residences they could easily accept the waiting time required for delivery of their pre-construction homes. Another point that makes renters good pre-construction buying candidates is the fact that since they do not have to qualify for a mortgage at the time of the contract, this gives them time to clean up their credit history in order to qualify for mortgage and favorable interest rates.
During our extensive work with new-home developers, we have always advised them to create a campaign aimed to reach the renters. We have also implemented many such campaigns targeting the renters based on their income and the proximity of their residences to the projects and many other factors to narrow down to the best possible prospects. In some cases, a special program that is tailored to the specific needs of these prospects has also proven successful. Such programs could include an easier down payment program, perhaps through an installment plan and other financial strategies designed to pave the road for obtaining a mortgage. The primary purpose of such programs is to demonstrate that to own a home is much easier and at time cost less than renting for this group of people. We have experienced that most renters could easily afford the monthly mortgage payments, but the qualification for a mortgage, down payment and closing costs, are the main hurdles that are stopping them from reaching their dreams. By purchasing a pre construction property under special Renters’ Homeownership Programs, they could pay the down payments in installments and also have an ample time to save for closing costs as well as the qualifying for a mortgage.
We invite developers to contact us for consultation on design and implement a Renters’ Incentive Program as well as many other proven solutions for the sales of the preconstruction homes to qualified buyers at the shortest time possible.