Trading Spaces, pt. 1

For anyone who is contemplating a new home purchase, the thought to having to carry two mortgages at once is quite daunting. This is why some builders are offering to let home buyers trade-in their former homes. Builders realize that although you may be in a position to buy the home they've recently built, you may be not be able to do so if you cannot sell your current home in this market.

Most often, a builder will agree to buy your home for a specified price once you close on a home they've built or sign a contract to have them build you a new home.

You should know that trade-in incentives for home sales aren't standard practice. But in these uneasy economic times, people are getting very creative.

You should also know that when you agree to let a builder buy your home, the price you'll have to agree to may be less than ideal. At the same time, some buyers are willing to take the guarantee of a (most likely) lower price if they have spent or foresee spending months being unable to sell their home.