Can builders buy your current home so that you build your new home with them?

My husband and I live in a home that will only sell if we list for $40K under market value. We don't want to sell for that low but need to sell in order to buy our dream home. If a builder could buy our current home for market value we would build with them for a house that is double the price of our current home. Thier incentive would be to make a sell on a $500k house. This happens to be in a new neighborhood where the house would be built and they still haven't had their first buyer (homes for sale since Janurary 1st, 2007). They're very motivated, that is why they have chosen to offer $90k in upgrades and perks.

Answer:
Buyer beware!

It's possible, but unlikely. I've seen it once before, but it was a small private builder selling a spec home to his church pastor.

Your builder simply isn't equipped to sell homes not in their development. They have sales staff they need at their own sites.

And if they pay you market value, they'll lose money on selling costs, so there's no way they'd give you 100% of market value. You'd be lucky to get 90%.

And to be perfectly frank, your statement about your prospects of selling your home just don't add up. "will only sell if we list for $40K under market value".

What that really means, is that in current market conditions, your home's actual current market value is $40K less than you wish it could be. Some homes in some areas have decreased in value. Yours sounds like it might be one of them.

There is nothing that says a builder or anyone else can't buy your home if they are ready willing and able. The drawback is would your builder be willing to take a $40K loss on your home plus have his money tied up for a period of time until it sells?

Only your builder can answer this question.

NO...what's the point? If they bought it for "full market value" and then had to turn around and sell it for 40K under market, plus realtor fees, they're just losing all around.

If your house would "only sell for 40K under market value" then sorry, that's the market value of your house. That's the friggin definition of market value-- what your house will sell for on the open market.

Why dont you just lowball your offer on the new house? You'd make up the difference and you wouldn't be doing something weird to get the deal to work. You dont NEED the 90K in upgrades and perks so get rid of those and you're 50K ahead of if you'd sold your house for "full market value".

Why not go to your bank or exisitng mortgage company and ask what options you have. You might have enough equity to use as a down payment while you are selling your existing house.
Talk with them first.
If a builder takes your home in trade you can bet that they will sell it for a nice profit and you will take a financial hit.

Can builders buy your current home so that you build your new home with them?

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