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Here is how to entice home sellers back into the market.

By Dan Mugge

Thirty-seven percent of existing homeowners say they want to move but are staying in their current home because of the risks and hassles that come with buying and selling simultaneously. 

Real estate agents and loan officers looking for strategies to attract hesitant homebuyers back to the mortgage market, especially in an environment of high interest rates and low housing inventory, are finding success with The Trade-In Mortgage™ powered by Calque.

Here is how they are doing it.

Winning more business with the Trade-In Mortgage

The Trade-In Mortgage was created to provide more buyers with the financial support and certainty they need to make a move. 

At the beginning of the process, a homeowner can use the equity in their existing home to confidently make non-contingent offers that are more likely to win against competing bids and secure buyers the home they want; importantly, accepted cash offers are also 11% lower on average compared to accepted contingent offers so real estate agents can use non-contingent financing to secure their clients a better price on the home.

Calque provides homeowners with a Purchase Price Guarantee on their existing home, which ensures Calque will buy it for an agreed-upon price if it doesn’t sell on the open market for more. 

Having the backup offer in place enables community lenders who work with Calque to write the mortgage on the next home as if the current home has already sold. 

As a result, loan officers can provide non-contingent financing and eliminate the existing home from debt-to-income considerations when they are qualifying homeowners for their new loan; this usually increases how much the borrower can qualify for on their next home.

Certainty at an affordable price

Sellers pay a small fee that gives them the confidence to shop for an buy their new home, even in this unpredictable market

“We were extremely pleased with The Trade-In Mortgage,” explained one Calque customer after moving from Colorado to Virginia. “It helped us get a lower price while buying and offered us a great sense of security in the selling process.”

But less stress inherent in the transaction is just one of the benefits. There are more.

During the loan process, transferring the money from one home to the next without a tax penalty allows the buyer to make a more significant down payment on a new home.

This enables the buyer to borrow less and secure a lower monthly mortgage payment on their next home, which is particularly helpful in a high interest rate environment. 

Furthermore, if the down payment is large enough, the borrower might be able to eliminate the need for private mortgage insurance.

Finally, homeowners can list and sell their current home for full value while knowing they have a backup offer if it does not sell. This gives them time and the opportunity to capture full market value for their house instead of selling it at a discount to access the equity in it quickly and close on their new home without the worry that they will have to carry two mortgages for an indefinite period of time.

According to a homebuyer who recently went through the process, “The best thing about Calque is the peace of mind that it will bring you. You don’t have to worry about ‘Oh, this person may buy the house, they may not…’ You can move forward with getting your dream home without worrying about if the old house is going to sell.”

On average, the program costs a borrower around 1.5% of the purchase price of the original home, but this fee varies by transaction and borrower. As Dean Ash, a REALTOR pointed out, “Many clients pay more than that if they move twice and get a rental. The fee is nominal when you think about the benefit it provides.”

Get the power of this program for your business

Real estate agents who want a powerful tool like this to spark homeowners in their market to list with them can sign up now at no cost or obligation. Use it when it helps you get the listing with no risk and no expense.

Find out more by signing up today.

Dan Mugge is the COO of Calque, a firm that partners with trusted lenders so homeowners can buy and sell real estate on their terms. He can be reached at [email protected].

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