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I finally have someone interested in my home. The buyer plans on moving to the area in May 2020 and is already looking at homes here. Should my realtor try to get a contract signed ASAP? What risks, or problems can occur to me? Is it off the market when it is under contract? This must be a common issue so how does it usually turn out?
No, a nine month escrow is not a common issue. It's foolish to accept it. Yes, it's off the market when the contract is signed. Tell the buyer to contact you next year and see if you still have it. Meantime, keep marketing it and get it sold.
No, a nine month escrow is not a common issue. It's foolish to accept it. Yes, it's off the market when the contract is signed. Tell the buyer to contact you next year and see if you still have it. Meantime, keep marketing it and get it sold.
Thank you,
If they can't close in a reasonable amount of time, say two months, that's exactly what I will tell them.
What is a leaseback? I know I should be asking these questions to my realtor but this is what he just said....
"If they couldn’t carry two mortgages then depending on the offer we could get creative. For instance offer a lease back. If they made an offer at or above asking you could lease back for six months in an amount to cover their debt service."
What is a leaseback? I know I should be asking these questions to my realtor but this is what he just said....
"If they couldn’t carry two mortgages then depending on the offer we could get creative. For instance offer a lease back. If they made an offer at or above asking you could lease back for six months in an amount to cover their debt service."
I don't understand this.
Neither does your agent. Unless they're paying cash, they're not going to be able to buy with financing for an owner-occupied house. It's unlikely that they'd want to get an investment loan.
as jack said above, they're going to have trouble buying your house and letting you lease back that long unless they have a loan program that isn't for owner occupied properties, or they commit mortgage fraud and say you'll only leasing back <60 days (but let you stay longer)
as others have said, tell them to contact you next year and see if your house is still available and then take a contract. under no circumstances would I advise a seller to accept a contract now with settlement that far out
we've got some incomplete information. You've received great advice so far. But your opening sentence "finally got someone interested", let's work through some details/options...
Yes, you would generally never want to wait 9 months to close as a Seller. Yes, this is generally a "bad idea". Yes, your house is generally "off the market".
If the Buyer put up a huge non-refundable deposit, and I mean like his 20% downpayment, then that would provide a certain amount of safety to you. He's assuming the risk - the risk he'll still want to move or have the job, the risk of interest rates in May 2020, the risk he can get approved. Your risk is can you sell your home for between 80-100% down the road should the Buyer still back out.
What IF the Buyer was able to get an investor loan - a slightly higher rate, and probably a higher downpayment? And you had some need to continue living there for some or all of the 9 month period (maybe your new house is being built, maybe you are doing a major remodel/expansion). He would reasonably expect you to "make him whole" on his ownership cost - PITI. If you needed the whole 9 months, no big deal. If you needed NONE of it, then what does 9 months of rent look like - how does it compare to your current list price and can you get a higher net in the next 30-60 days? What are the chances given your market's seasonality that if you don't sell in 30-60 days that it will be next May before you find a buyer that closes anyway?
Here, we can only do a purchase contract with a maximum of a 90 day close.
I'd turn down offer.
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