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Builders offer new twist on move-up incentive

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A Detroit firm has come to Indianapolis with a new twist on the "move-up" incentive for new houses.

Marketplace Homes LLC is advertising its services in conjunction with national builders Drees Homes and Westport Homes Inc. Instead of offering to help would-be buyers of new houses sell their old homes, Marketplace is offering to become a rental property manager. The company says it will even guarantee lease payments from the old house for as long as six years.

However, there's no guarantee that those payments will cover the new mortgage payment. Or that home buyers will be able to finance a second mortgage.

"That's where it gets tricky. You do have to qualify for the second mortgage," Marketplace Homes marketing assistant Elyse Sarnecky said.

Marketplace makes its money on commissons paid by the builders. The company sends a "solutions manager" to the existing home to determine its rental value. Marketplace will then guarantee a certain stream of income, whether it successfully rents out the home or not. Sarnecky said the longest a house has gone unrented is about three months.

"The rental market is really strong right now," said Lisa Andrews, a co-owner at Carmel-based Silver Property Management Inc., a residential rental property manager.

Foreclosures have pushed quality renters into the market, but the crisis has also created a lot of rental inventory, Andrews said. As a result, rental rates are staying low. Andrews said she encourages single-property owners to see the rental income as a way to mitigate their losses, rather than cover a mortgage.

Andrews said she's not concerned about potential competition from the Marketplace Homes program because they're targeting traditional homeowners, not investors.

Marketplace's "buy now, sell later" program seems to have worked well in the depressed housing market of Detroit, and now it's expanding to multiple cities. Marketplace, which is privately held, says its program accounted for 200 sales of new homes in metro Detroit last year.

Marketplace says it has helped sell two new homes in the Indianapolis area in the past two months, one by Drees in Somerset in Fishers and one by Westport in Bay Creek East in McCordsville.

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  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

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