Steadworth's Home Wealth Share program provides homeowners with the flexibility to buy themselves out of the agreement at any time through the Owner Repurchase option. This option allows you to terminate the agreement and retain full ownership of your home without having to wait until the end of the contract term.
How the Owner Repurchase Option Works
To exercise the Owner Repurchase option, you must follow these steps:
Provide Written Notice: You must provide Steadworth with at least 60 days' written notice of your intent to repurchase the option. This notice should clearly state your intention to terminate the agreement and repurchase Steadworth's investment.
Appraisal: Steadworth will require a final appraisal of the property to determine its fair market value. This appraisal will be used to calculate the Steadworth Proceeds that you will need to pay to terminate the agreement.
Payment of Steadworth Proceeds: Upon closing of the Owner Repurchase, you will be required to pay Steadworth its original investment amount plus its share of the home's appreciation, as outlined in your Plan Agreement. This payment is typically made through the closing agent or directly to Steadworth.
Calculation of Steadworth Proceeds
The Steadworth Proceeds for an Owner Repurchase are calculated in the same way as they would be for a sale or refinance at the end of the contract term. The formula takes into account the Ending Home Value (determined by the appraisal), the Original Home Value, the Steadworth Percentage, and any applicable fees.
Benefits of the Owner Repurchase Option
The Owner Repurchase option provides homeowners with several benefits:
Flexibility: You can terminate the agreement and retain full ownership of your home at any time, without having to wait until the end of the contract term.
Control: You have the option to decide when and how to terminate the agreement, based on your individual circumstances and financial goals.
Potential Savings: If your home has appreciated significantly in value, exercising the Owner Repurchase option early may allow you to avoid sharing a larger portion of the appreciation with Steadworth.
Considerations
It's important to note that exercising the Owner Repurchase option may involve costs such as appraisal fees and potential early termination fees. Carefully review your Home Wealth Share Agreement and consult with Steadworth's team to understand the specific implications and costs associated with the Owner Repurchase option.
By understanding the Owner Repurchase option and its implications, you can make informed decisions about your Home Wealth Share Plan and retain full ownership of your home when it aligns with your goals.