Released on: October 6, 2008, 7:05 am

Press Release Author: Howard Schwartz, Better Business Bureau, CT

Industry: Real Estate

Press Release Summary: Trade it in for a new home, but Connecticut BBB says beware

Press Release Body: Wallingford, CT - October 6, 2008– The slow housing market and a
glut of new, empty houses has prompted builders to come up with creative ways of
helping homeowners trading the old for the new, by offering to accept a house as a
trade-in, much the same way as car dealers accept used car trade-ins to bring down
the purchase price of new vehicles.

U.S. Census Bureau statistics for June show that builders faced an average of almost
eight and a half months to sell a completed home, the longest delay in selling time
in a quarter century.
Connecticut Better Business Bureau President, Paulette Hotton Scarpetti, warns
people considering trading-in their existing home for a newly-built one to be
careful.

“A home may be the most expensive item an individual or family will ever buy.
Because of the size of this investment, consumers should be fully aware of some of
the pitfalls.”
Here are a number of ways to protect yourself from problems with a house trade-in:

Use a reputable builder: Always check out builders at www.bbb.org to see a
Reliability Report free of charge, but homeowners also should confirm the builders
meet state registration and licensing requirements with appropriate state licensing
agencies.

Evaluate the market: Homeowners should take into account current and projected
market conditions around their existing property and new home to determine whether
they’re getting a good deal or not.
A number of free resources are available on city and county web sites, local
realtors’ sites, and in newspaper archives and court records. These can help when
researching home prices, tax rates, and other factors such as proximity to
transportation, schools and community growth plans.

Take hold of financing: Homebuyers must take into account the full cost of the
purchase, including closing costs, legal fees and interest - to avoid being taken in
by what appears to be a low price. Builders may recommend a specific lender to
receive incentives associated with the trade-in, but using the builder’s preferred
lender means the buyer may not be able to negotiate as good a deal as if they had
gone through someone else.

Is it worth the wait?: Trading in a home, like a car, can be a quick way to sell,
but does not offer the best rate of return. Be prepared to settle for less than
your original asking price, sometimes by tens of thousands of dollars, depending
upon market conditions. It may be more profitable for the owner to wait for a
housing market upturn.

Contract concerns: As with any large purchase, it is always best to have a second or
third pair of eyes go over the contract before signing. This can be done by a real
estate attorney.

Consumers can find more information on buying a home at www.bbb.org. Additional
information is also available through our website in a book called “BBB Insider’s
Guide to Buying a Home,” in the “For Consumers” section, under “Resource Library” at
www.bbb.org.



Web Site: http://www.bbb.org

Contact Details: Connecticut Better Business Bureau
94 South Turnpike Rd.
Wallingford, CT 06492
203-269-2700 ext 103