When twins Robin Smith and Robert Smith launched the Nevada Builder Trade In Program in 2014, neither would have predicted that the program that helps current homeowners sell their current residence while buying a brand-new one on contingency would grow so quickly.
The buying-selling program helped 82 homeowners successfully close on their home sale while buying a brand-new one in neighborhoods throughout the Las Vegas Valley and Mesquite in 2018, with an additional 15 homeowners entering 2019 with a sale-purchase on the horizon.
“When we decided to launch the Nevada Builder Trade In Program in 2014, we knew that homeowners were sort of in limbo. They were wanting to buy homes at the new neighborhoods that were under construction, but they had to sell their current home first in order to afford it and were uncertain of how to do that. Could they just walk into a model home complex and ask a builder to build a home for them contingent on the sale of their current one?” explained Robin Smith, who operates the program with her brother through their Smith Team at Keller Williams Las Vegas office.
“Our housing market was rebounding with sales prices increasing. There were homeowners waiting on the sidelines to buy brand-new homes, and they could afford it with the increased equity in their homes.”
At the same time, new-home construction was making a comeback.
“So we approached homebuilders with the concept of creating a contingency program that could help connect them to financially stable homeowners who could afford to buy their new homes by using their home equity, and builders were interested,” Robin Smith said. “We started the Nevada Builder Trade In Program with one builder-partner who I had heavily worked with in the past and grew the program by adding one new builder-partner at a time and by successfully helping homeowners sell their homes and buy brand-new ones at the same time.”
The contingency program has grown to 50-plus neighborhoods with more than 100 floor plans constructed by builder-partners Beazer Homes, Century Communities, Pulte Homes, Woodside Homes and Sun City Mesquite by Del Webb.
Its 2018 clients ranged from families looking to upsize, retirees downsizing, couples planning for future families, homeowners wanting to live closer to work or in a specific master-planned community, and multigenerational families combining households.
Whatever their reason for wanting to buy a new home, the Smith Team’s focus is the same: Sell each client’s home for the highest price possible and help each client move into a new home.
To reach these goals, the Nevada Builder Trade In Program follows a strategic approach that starts with the Smith Team meeting with a potential client in his/her current home.
During this initial meeting, homeowners gain a better understanding of the contingency process and personal finances as the team assesses their current home and provides a complimentary “comparative market analysis,” or a projected sales price based on the home’s condition and recent comparable home sales. The team also offers advice on minor repairs, updates and staging that could increase their homes’ sales price, which in turn could impact the equity available for a new-home purchase.
“Getting the facts and a realistic idea of how much you can sell your home for is very important when deciding how much you can spend on your new home and if selling your home makes sense,” Robin Smith said.
If after the initial meeting a homeowner selects the Nevada Builder Trade In Program, the Smith Team can help them in their new-home search focused within their designated price point.
Through the program, a home can be purchased on contingency at multiple stages of construction, including standing inventory homes at some neighborhoods.
After the homeowner selects the new home and the Smith Team negotiates a contingency purchase agreement with the builder, the team lists and sells the current home at a reduced commission, while offering the buyer’s agent the standard 3 percent commission.
After the sale, the Smith Team helps arrange moving services or helps locate a temporary rental, if needed, between the sale of the current home and the completion of the new home.
To learn more about the Nevada Builder Trade In Program, contact the Smith Team at 702-460-5080, visit ISellLasVegas.com or inquire at a builder-partner neighborhood.
Homeowners interested in purchasing a home on contingency at a non-builder partner neighborhood and receive benefits similar to the Nevada Builder Trade In Program should contact the Smith Team before starting their home search.