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Old 02-09-2018, 08:37 PM
 
Location: MID ATLANTIC
7,447 posts, read 17,026,662 times
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Always important. There are pockets where rent backs are seen more than others. Washington, DC is one such area.
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Old 02-13-2018, 01:38 PM
 
Location: Columbus, OH
839 posts, read 505,848 times
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A few days is common in many places, but 60 days seems extreme.
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Old 02-13-2018, 09:41 PM
 
48 posts, read 40,178 times
Reputation: 31
Quote:
Originally Posted by bear09 View Post
Seller wants max 60 days after closing before possession.My real estate agent says it's very common.I am concerned about the liability and damage. Any input is greatly appreciated.Thanks.
I'm not a pro but this is odd ask, for a credit they cover hoa fees, taxes for that month etc, seems like they aren't ready to move but need to sell?

what happens in these situations if they don't leave because they don't find another place, you have to evict- how long does that take?
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Old 02-14-2018, 08:57 AM
 
5,497 posts, read 6,980,678 times
Reputation: 3061
Quote:
Originally Posted by KJMoves View Post

In our market, which has been great for sellers & tough for buyers the last few years, this has become a little more common. The sellers want to sell, but know they are going to have trouble finding a place, so this gives them a little flexibility & cash in their pocket. So when they find the home, they're able to put in an offer with no home sale contingency.

The transactions I've had where this was used successfully consisted of sellers who needed that additional leverage, and buyers who had been dealing with a very competitive market and were willing to allow it just to get the house.
This. I almost did it on a house I just sold. I had actually been interested in doing it but never specifically asked because I figured most buyers wouldn't want to do it (I was in a generally hot market, but not necessarily a super hot specific area within the market).

However, it came up when discussing something else with our buyers and they said they would be interested in doing it (they were going to be breaking a rental lease, which is another reason in general that buyers would be open to or even prefer doing this). We got sent what looked like a "standard" form for our state (NC), it was only about 2 pages and pretty sure it was saying that even after closing we as the sellers would be responsible for any and all repairs regardless of whether we had anything to do with it. Naturally we refused to sign that, they offered to draw up more of a standard lease but that experience soured us on the idea so we didn't do it all.

But it definitely got me thinking that I certainly wouldn't want to do it as a buyer. In addition to potential damage in general, if they don't move any of their stuff out prior to closing then you have no idea what's behind/under furniture, etc.
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Old 02-14-2018, 09:07 AM
 
2,098 posts, read 1,299,668 times
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Don't listen to agent, they are in the business to make money.
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Old 02-14-2018, 09:21 AM
 
281 posts, read 205,081 times
Reputation: 472
We did a 60 day rent back with our last purchase. They had a lease on an apartment, and we were still looking for our next house. So it logistically made sense for both of us. The rent was withheld at closing, all up front.


Would I do it again as a buyer or seller? No. I think the seller took more risk than we did, simply due to the risk of damage, need to evict, etc. As a seller/renter, we had to deal with an enthusiastic buyer continually wanting to do measurements, check out their new house, give unsolicited advice on lawn care, etc. Yes, they own it so they can do that within reason....but it was somewhat intrusive and annoying.


We also had a weird moment when we handed over the keys. We had a dog who lived there, before and after close. They got upset because we kept our dog in their house during the rent back. The rent back lease had no clauses about animals, one way or the other, so we proceeded as we had done prior to the sale. Evidently they had other thoughts on what was appropriate.
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Old 02-16-2018, 08:51 AM
 
Location: Boise, ID
7,928 posts, read 21,735,578 times
Reputation: 8970
Quote:
Originally Posted by nybklyn View Post
Don't listen to agent, they are in the business to make money.
Whereas people in other professions work for free.

The best agents realize that the best way to make money is to have satisfied customers who refer and return to buy another house down the road. I know many agents who generally won't even take on non-referred clients anymore because just repeat business and referrals keep them as busy as they can handle. Those are the best agents.

So rather than "Don't listen to agent", I would say "Get a referral to a good agent you can trust and then DO listen to them."
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Old 03-04-2018, 11:31 AM
 
Location: Boise
548 posts, read 495,659 times
Reputation: 1196
I would never close on a house where the owner or tenant were still in the home.
Too many potential issues.
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Old 03-06-2018, 09:32 AM
 
266 posts, read 152,155 times
Reputation: 226
Most lenders allow up to a 60 day lease back from the seller when the buyer uses a owner occupant loan. It's not that uncommon to do a leaseback like this. Maybe 1 out of 25 transactions include a longer term leaseback.

Also make sure your insurance coverage covers the property as well, make them aware. Most are okay with it. The seller should get their own renters policy on their belongings, or it should be recommended to them as they will then be a tenant.
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