should I let the buyer rent until closing?? (Garner: sale, apartment)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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We have a house on the market in Garner. Got a call from agent today, letting me know that there's a possible buyer. They wouldn't be able to close until end of December (which isn't a big deal). And, they're closing on a house in another state end of the week and would like rent our house between now and closing. The other agent hasn't disclosed a lot of the information as to why the longer than 30 days before closing or why they haven't found a place to live temporarily when they're scheduled to move in less than a week, etc.--hopefully, I'll know more about that today.
We've getting a lot of showings, and I just don't want to mess things up and not end up with a sale, etc.
We've not received a formal offer, so I'm not sure if this will something that we'll have to look into further or not. In the mean time, I just wanted to see if anyone else has any been in this situation or has suggestions to offer!
It's not unheard of, but please be careful - if anything happens to cause the sale to fall through, you're now in the position of landlord, and worst case scenario, you may have to go through eviction procedings which can take months, no matter what the contract says. Try finding another buyer during that time!
I would recommend finding them a temporary apartment that does month to month leases - your agent should know some. It could be that they need the funds from their other home in order to qualify to buy yours, in which case if that sale falls through, then they CAN'T buy yours, and... well, see above. Your agent may be able to counter with a closer closing date and see if they qualify for a bridge loan in case their other home doesn't sell. It depends on how much risk you're comfortable with.
When my husband and I bought our most recent home we had about two weeks where the people who bought our houses needed to close but we couldn't close yet on the new house because of family circumstances. Anyhow, when we wrote our contract we added the renting back as an addendum, and we paid the owner's rent while we were living there. We had to sign an additional agreement (renter's agreement) in order to accomplish this. It worked for us, but we were moving into a vacant home, with new construction.
So, it can be done, but we did it for a very short period of time and you just need to make sure you have a separate document regarding renting. We paid the rent outside of closing.
I would be more comfortable with the sellers renting back from the buyer (like in leighbhe's scenario) than your situation, where the buyer wants to move in early. Once the buyer has all their stuff in your house, if anything happens, they're not going to be happy moving it all back out again. It could all be fine, it's just whether you're okay with the risk involved.
Sorry I didn't make myself clear, but in this circumstance, we were the buyer's renting back from the sellers. We moved to our new house early, because the people buying our house had to close by a certain date and we couldn't close on the new house because of family obligations.........so we were the buyer's renting from the seller's
We have a house on the market in Garner. Got a call from agent today, letting me know that there's a possible buyer. They wouldn't be able to close until end of December (which isn't a big deal). And, they're closing on a house in another state end of the week and would like rent our house between now and closing. The other agent hasn't disclosed a lot of the information as to why the longer than 30 days before closing or why they haven't found a place to live temporarily when they're scheduled to move in less than a week, etc.--hopefully, I'll know more about that today.
We've getting a lot of showings, and I just don't want to mess things up and not end up with a sale, etc.
We've not received a formal offer, so I'm not sure if this will something that we'll have to look into further or not. In the mean time, I just wanted to see if anyone else has any been in this situation or has suggestions to offer!
Thanks!!
You haven't received a formal offer? Am I missing something?
Why would you want someone in your house who hasn't even made an offer?
Sorry I didn't make myself clear, but in this circumstance, we were the buyer's renting back from the sellers. We moved to our new house early, because the people buying our house had to close by a certain date and we couldn't close on the new house because of family obligations.........so we were the buyer's renting from the seller's
Leigh
Makes more sense, Leigh - thanks for clearing it up!
You haven't received a formal offer? Am I missing something?
Why would you want someone in your house who hasn't even made an offer?
When the buyers agent called to speak with my realtor about the house, they mentioned the whole deal about wanting to rent the house...and so my agent called to give me a heads up about what might be coming.
They're still "thinking" or so I heard today. I just don't understand how someone sells their home to move several states away the same weekend and doesn't have a plan as to where they're going to live!? Hmmm... It's starting to seem a little odd to me, and I'm leaning towards no for the renting of the house.
As both parties above mentioned selling a home, closing, and leasing back for a few weeks or even a month is not uncommon. This happens when families are building a new home and haven't quite finalized the completion date. By providing the sellers and option to leaseback you would be providing them a great benefit.
On the other hand, letting "potential buyers" move-in prior to the completion date you are setting yourself up for great risk. What if there are repairs that can't be agreed to? What if the property doesn't appraise?
What if they move-in and hate the house?
There are a number of scenarios that could put you at risk. I'd avoid the rental before closure at all cost.
It's a person & two kids and I'm feeling very strongly against renting before buying--seeing as they want to move in Monday and haven't made plans before now.
Is there anything for people to rent for a month or two close to Garner area?
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