January 11 2016
Following the great housing bubble burst, real estate investment phobias abound. One of the largest fears scaring would-be buyers away from a home purchase: A lost nest egg, gobbled up by a home which, when later sold, nets little to no return on down payment. But what if those precious funds were protected? Would more buyers bite?
According to a recent Harris Poll, would-be buyers continue to be reluctant to enter the housing market, despite recovery. Only 55% of renters expect to get a return on their down payment investment if they buy today and resell within the next few years.
Step-in the +Plus by ValueInsured, a down payment protection program designed to reimburse buyers should funds be lost in a market downturn. Beginning in 2015, buyers nationwide can purchase a policy for a one-time fee at closing, $1,000 on average, depending on the state. Should a home later be sold for less than the purchase price, and if the FHFA Home Price Index for the homeowner's state at the time of sale is lower than it was on the purchase date, compensation is provided in the actual equity lost, or the purchase price of the home (times the reduction in state HPI) – whichever is lesser.
It is unknown whether or not real estate selling tips related to this emerging industry will net a change in the real estate market. But according to polls, a down payment protection program would help quell fears for:
To view the original article, visit the Properties Online blog.