IBJNews

Builders offer new twist on move-up incentive

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

  2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

  3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

  4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

  5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

ADVERTISEMENT