Here is a new program designed to insure the value of the home you are buying. Equity Lock Solutions is offering a product called Home Price Protection.
Generally the plan works like this: The buyer or seller of a home or condominium in Park City can purchase a plan of up to $2 million for a one time fee of 1.8-3.0% of the plan amount (costs vary slightly but Keller Williams agents have access to the lowest rates). The plan is tied to a local House Price Index published by the Federal Housing Finance Agency (FHFA). The index for the Park City area is tied to the Salt Lake City metropolitan statistical area. If the index drops from the time of purchase to the time of sale, the plan pays the percentage difference in the fall to the owner at the time of the sale.
If you as a buyer purchased this price protection and bought a $1 million Park City home and five years from now when you go to sell the home the House Price Index has gone down 10%, the Home Price Protection Plan will pay you $100,000 when you sell the house. The plan is a hedge against the housing market going down, not the individual home, so choosing the correct home is still important.
For more in-depth information about this program as well as the current HPI for your area, go to: http://equityocksolutions.com/faq/ .
The NAR (National Association of Realtors) has picked Home Price Protection as their product of the year.
This may give a buyer the peace of mind they are searching for as they wonder if they are truly buying at the bottom of the market.
For more information about Home Price Protection or any Park City or Deer Valley, UT real estate questions contact a realty professional with the YouInParkCity.com Group of Keller Williams Park City Real Estate at (888)968-4672 or email us at info@YouInParkCity.com.
Jenny Clark
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