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Builder Offering Model Homes With Lease-back

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gregb

Elite Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
First time I have seen an offering by the builder to sell model homes with a lease-back. Guess this must be more common than I was aware of.

The following model homes will be for sale as a lease back on Saturday, September 17th. Shea Homes will pay 5% of the final price (divided by 12) per month. The lease term will be 5 months with a Shea Homes Option to extend the lease on a month to month basis at the end of the 5 months.

Below is a virtual tour for each model home. What additional questions can I answer for you or your clients?

Click on the model home virtual tour links below.


Monterey II $850,000
http://www.tourfactory.com/idxr1157877


Genova $1,000,000
http://www.tourfactory.com/idxr1162199


Avila $1,050,000
http://www.tourfactory.com/idxr671027


Carmel $1,125,000
http://www.tourfactory.com/idxr1162198
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
First time I have seen an offering by the builder to sell model homes with a lease-back. Guess this must be more common than I was aware of.

The following model homes will be for sale as a lease back on Saturday, September 17th. Shea Homes will pay 5% of the final price (divided by 12) per month. The lease term will be 5 months with a Shea Homes Option to extend the lease on a month to month basis at the end of the 5 months.

Below is a virtual tour for each model home. What additional questions can I answer for you or your clients?

Click on the model home virtual tour links below.


Monterey II $850,000
http://www.tourfactory.com/idxr1157877


Genova $1,000,000
http://www.tourfactory.com/idxr1162199


Avila $1,050,000
http://www.tourfactory.com/idxr671027


Carmel $1,125,000
http://www.tourfactory.com/idxr1162198
This is very common in many areas. Where I am from most model homes are sold and leased back by the builder. BTW, I would not use sales of model homes that are being leased back to the builder as comps in a residential appraisal as these are not sales of residential properties in my opinion....these properties are sold as investments with income from a commercial lease as the use of these homes is for a business/commercial use until the development is completed and the homes are re-converted into a residential use.
 
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Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Common around this part of the country, often they include the model home furnishings in the price (or so Ive heard).
For my money, would not want the location of the Models, as they are high-traffic entries and exits from the subdivision.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Typical in my market too.
 
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