Here are some of the questions Buyers have had over the past few years.  If you have a question, please contact us.  We will be happy to give you our opinion and advice, whether you are buying one of our homes, another builder's home, or an existing home.

Q & A:

I've been told I am "upside-down" in my house.  What does that mean?

This simply means that your mortgage balance is more than the current value of your house meaning that if you were to sell your home, you would need cash out of your pocket to complete settlement.

How did I get "upside-down"?  Whose fault is it?

There are two main reasons you may be "upside-down": first, if you purchased your home between 2004 and 2008 when Real Estate prices were the highest, and secondly, if you bought your home prior to 2004 and either refinanced or took out a home equity loan based on inflated market values during the middle of the last decade.  Home values in our market area have fallen 5% to 20% since 2007, and are currently around 2003 levels.

No one is really to blame.  Real Estate markets have historically appreciated at about 5% per year, but this time, because of many of the factors you hear about in the news today, prices went well beyond the traditional 5% increase per year.  Therefore, as with the stock market, a correction was in order.  The difference is that Real Estate is personal - you live in it; you raise your family there.

I guess the best thing for me to do is sit and wait until the market recovers, then buy a house in a few years.  After all, your homes will be priced the same as today, and of course, interest rates will remain the same, right?

Think again!  If your home value rebounds, new construction prices will increase at 1&1/2 times that of existing homes.  Why?  There is a growing pent-up demand for new homes and every day there is a smaller inventory of new homes and available lots on which to build.  In times like these, developers stop developing land and it takes at least three years to bring new lots to the market.  In addition, new home prices are based on cost and, unfortunately, it costs more today to build the same home as it did yesterday.  This is always true.

But at least rates will stay low, right?

This simply can't happen.  As the economy improves, rates will surely go up.  Just look at the gas prices; the same will happen to home mortgages rates.  Every 1% increase in the interest rate on a $300,000 mortgage increases your monthly cost by $178, and reduces your buying power by $33,000.

As you can see, any rate increase, and/or price increase will limit your ability to purchase the home you want. 

If I am upside-down in my home, how can I possibly purchase one of your homes?

We have a number of programs that help you purchase a home even though you owe more than your home is worth.

I hear on the news that I need a 20% downpayment to buy a new home.  I don't have that kind of money?

Again, this is simply not the case.  Of the last 15 MacIntosh buyers, no one had a downpayment of 20% of the sale price of the home.  If you are a Veteran, no downpayment is required.  If you purchase FHA, less than 5% is required.  We also have conventional mortgages available with only 5% to 10% down required.  Of course, each homebuyer's situation is unique and qualifying and certain restrictions may apply.  If you five us a call or visit us, we can provide guidance as to what will work for you.

Okay, say I can muster up a downpayment.  What about the outrageious settlement costs which I hear can be as high as $15,000?

We can roll your settlement costs into the purchase of your new home so that you don't need cash for these costs.  Depending on the mortgage program, certain limitations may apply.

I'm still short of cash.  I've heard that you have worked with some of your homebuyers on what they describe as a "savings plan"?

That's right, and it works great.  After we ascertain the required deposit needed to start construction, we take that number, less the original deposit and divide it by the number of months between your agreement date and your settlement date.  It's always a number that, if you tighten your belt a little, you can afford.  The end result is that you bought a house you thought was an impossible dream.

Can you help us sell our existing home, and if so, what will it cost?

Yes, we can.  Hancock Realty Corp. is a full-service Real Estate Company and member of the Trend Multiple Listing Service.  We charge 2% of the selling price to list and sell your home.  This can be a huge savings to you.  In the event a co-op Realtor sells your home, you pay them a 2 & 1/2% commission at settlement.

I have been working with a Buyer's Agent for some time now.  Can we still take advantage of some of your programs?

Absolutely.  If your Buyer's Agent has introduced you to MacIntosh Builders on your first visit, or through a phone call, then the same programs apply.  Make your best deal with your agent on your existing home and we will assist that agent with marketing your home.

What happens if I can't sell my present home?

A number of our homeowners, after testing the sales market, lease out their existing home for 1 to 3 years.  This is a great alternative if the situation is right for you.  As the Real Estate market rebounds, there is a good chance you will not lose any money when you eventually go to sell your existing home.  Sit down with us to see if this can work for you.

How long will MacIntosh extend settlement and guarantee the sale price?

 Enter into an agreement of sale today, and we will give you up to 12 months to settle on your new home at today's sale price.  You must be proactive and aggressive when it comes to selling your existing home.  Together, we will determine an optimal price on your existing home and then have a series of pre-determined reduction of the original price until the home is sold.

What if we go through all of this and my house doesn't sell?

This shouldn't happen.  It's all about pricing your home realistically at the start.  Do that and your home will sell.  Together we will determine if buying a MacIntosh home and selling your existing home will work.  If we look at the worst case scenario and it isn't feasible, we won't proceed.

I've heard that you would consider a "trade-in" like trading your used car for a new one?

This is true, but it is a limited program and does not work for everyone.  On a trade-in, we do everything mentioned above.  If all else doesn't work, I purchase your home for 75% to 85% of the then lowest listed market value, depending on condition.  As you can see, if you are already cash-strapped, this won't work for you.

Why only 75% to 85% of the market value on a trade-in?

Well, I can assure you that it's not a profit center.  Unfortunately, I need to sell the home and will have the same costs you would, which includes the cost of sale, carrying costs, repairs, etc., which is generally 15% to 25% of the sale price.

What kind of warranty does MacIntosh Builders provide?

MacIntosh Builders provides a 10-year warranty through Quality Builders Warranty Corporation, which is one of the best in the nation.  The warranty is backed by Liberty Mutual Insurance Company, one of the largest insurers in the world.  Go to www.qbwc.com for warranty coverage.

Driving through your communities, I notice that the houses look custom built with many different styles.  Are you a custom builder?

Yes, we custom build every home starting from the base design of over 30 different models.

Can we make changes or are we limited to a standard list of options?

Make all of the changes you want!  Our homes are designed to stretch or shrink.  add baths or garages, move rooms, or eliminate rooms.  This si the fun part of building! Let you imagination go wild.

But won't making changes cost a fortune?

Absolutely not.  Changes are what we do to fit your lifestyle.  All changes are affordably priced, the cost of which is communicated to you within 48 hours.  The decision is yours.