Using programs that help out real estate agents can more easily facilitate the home sales process, and there are a number of these options available. At Lodestone, we focus on many of these tools, and one story can give you an idea about one government program that made a purchase a whole lot easier for everyone.
The Department of Housing and Urban Development offers the Good Neighbor Next Door Program, and it is something that Lodestone representatives are experts on.
The Good Neighbor Next Door Program works to improve local areas by offering a number of options to police officers, firefighters, EMTs and teachers to become homeowners in their neighborhoods, according to HUD. This will give them the ability to cut the list price by 50 percent, as long as they will live in the home as their primary residence for three years or more.
There are specific areas that are considered for the program. Checking these options first will help give these individuals a better idea of how they can take advantage. There are many listings in each state, and those interested parties can apply for a specific property. When more than one person wants the same residence, the government will have a random draw.
How it worked for us
Lodestone agent Rachel Demeter worked with a situation related to the Good Neighbor Next Door Program in an East Charlotte subdivision, helping the purchaser cut the cost of their property by $52,500.
While the homeowner will benefit from the notable deduction in the home's cost, there are other reasons for real estate agents to focus on shopping these properties.
"The potential homebuyer will be very grateful for the opportunity to save so much – an option that isn't particularly widespread throughout the residential industry," Demeter said.
Any real estate agents who do work with customers on this process will need to ensure that they know the policy inside and out. Homebuyers typically ask real estate agents a number of questions when trying to purchase a home, but with this option in play, there may be a lot more to answer and discuss. The government agency wants everything to be perfect when someone looks to purchase this home, so the real estate agent needs to be on top of the situation.
The client in the sale was a teacher at a local elementary school. She tried three times to acquire different properties before one worked out with the program.
In order to help out those who are trying to purchase a property of this type, it is necessary for real estate agents to know the market they operate in. There are certain homes that may qualify for this option, so it is a good idea to keep close tabs on what is and is not available. Finding these residences and giving the options to the clients is the best way to go.
This program isn't new, but there are many who are either completely unfamiliar with it, or aren't aware of how it works. Since this is the case, we worked with educational facilities, emergency medical personnel, police departments and fire stations to give people the most knowledge available.
It is important for any homebuyer who wants to take part in this program to speak with a real estate agent who knows the program well. The couple that we dealt with for this property felt good about everything, despite how stressful the homebuying process can be.