TRADE-IN PROGRAM
(Better known as our "GUARANTEED BUYOUT")

   We have a very simple guaranteed buyout program that allows us to begin building your new home even before you sell your existing home. This is strictly to make sure you have a buyer before we start your new home. This allows the bank to realize your equity up front. The important thing to remember is that we don't make a penny on the transaction of your used home, we just want the privilege of building your new home.

   The price that we guarantee for your used home is determined by you, a reputable real estate agent or appraiser from your area; and Mike Alexander. Once a price for your used home has been agreed upon and we have approval from your bank, we begin to build your new Alexander Home.

   As we build your new home, your present home is being marketed by a mutually agreed upon professional real estate agent. Best scenario is that your used home sells before we are done with your new home. Worst scenario is that if it hasn't sold, we will buy it at the previously agreed upon price.

   This isn't a cheap buyout either. It doesn't do you any good for us to just pay off your loan value, we guarantee equity in most cases.

Example:
      John and Jane Doe have a house worth approximately $70,000.00 and they owe $40,000.00 on the mortgage. A respectable real estate agent or appraiser does a market analysis or appraisal. The numbers come back that it is worth somewhere between $66,000.00 and $74,000. Mike Alexander will guarantee the $66,000.00 if it isn't sold by the time your new home is done. Your used home is usually sold in the 3-4 months it takes us to build your new home. In the event that it is not, that is when our guarantee comes in – not before. We don't want to be THE BUYER, we only want to be the guaranteed backup buyer. We don't buy used homes, we build new homes.

   With this in mind, there is still a realtor fee involved. If we end up buying your used home, we will most likely market it with your current realtor. They only get paid once, that is when the house is sold to a buyer – not us. Using the example above, if the worst scenario happens and we buy your house from you, we will market the home but the clients are still responsible for maintaining the yard, snow removal, replacing a broken water heater, paying taxes and utilities - etc. Another option is to put a holding cost in. We would hire the mowing, snow removal, utilities - etc. We don't make money on the guaranteed buyout, but we don't want to lose any either. If we were to sell this home for $68,000.00, John and Jane Doe gets the $2,000.00. If we sell this home for $64,000.00, Mike Alexander takes the $2,000.00 loss. If the sale price is $66,000.00 minus a typical 6% realtor fee = net: $62,040.00. Net equity with this scenario is $22,040.00. More typical is a higher equity resulting in the sale of the home while we are building.

   Now, with the guaranteed buyout, all of your housing numbers are guaranteed. We guarantee the price on your new home, plus you have a guarantee on your used home.