Differences Between Our Program and an Open Market Sale
Buying and selling a home that is part of the Permanently Affordable Homes Program is similar to most real estate transactions. However there are a few differences that are highlighted below. We have developed a Real Estate Agent Guide to provide you with more details about buying and selling through our program.
The maximum resale price is calculated by the City. The home cannot sell for more than this price, but it can sell for less. Other concessions (closing costs, repairs, etc.) can be negotiated.
The maximum resale price calculation usually includes a 2.5% real estate agent commission. Customarily this is split equally between seller’s and buyer’s agent. Your client may offer a higher commission if they wish, but they will be responsible for any payment above the amount added to the maximum resale price by the City.
Open marketing period and fair selection process
A newly listed home must go through a 30 day open marketing period. During this time interested buyers look at the property, complete eligibility certification if still needed, and notify the City of their interest in buying the property. At the end of the 30 days the City coordinates a fair selection process from among the qualified buyers that have expressed interest in the property. The household in first position is given 24 hours to submit a contract to the buyer and their agent.
The City will request a copy of the buyer's inspection. We may require the seller to fix items if we believe they fall under the covenant requirements that the owner agreed to when they purchased the home. The City’s request does not limit a buyer's ability to ask for corrections to inspection items outside of the City's requirements.