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When I sell my house, I was thinking about doing a rent back agreement or delay closing for 30-60 days. Which is less work and headache for a seller? Will either option turn buyers away? If I do a rent back, what terms should I include?
Delaying closing will effect their rate. The longer a buyer locks a rate, the higher the rate is. Also, if the rate is locked and rates go down, the buyer doesn't get the lower rate.
If you lease back the house, you lease it back at THEIR price, so you will pay a premium to live in a house you don't own. Is the premium worth it because it's more convenient to you? That's for you to decide. I've had sellers get angry at the numbers. One was used to paying about $800 a month for mortgage, but the new buyer's mortgage payment was $2200 a month... guess who gets to pay that difference? Premium for convenience or move twice? Your choice...
We've done this 3 times before and it has worked out fine. It really helps to give you the extra time to move yours stuff and get situated with your new place. You close as usual (no delay) and then agree on what you pay and terms. We always kept it simple. We will rent for X amount of dollars and will rent for a set amount of time. The terms are no different than renting from someone else. It's just much more convenient for you. Just be upfront with your buyers and ask if they'd be open to that option. It works well in a seller's market, although we've done in both markets. Good luck!
Before you sell, set the terms that you want a 60 day closing and let potential buyers know that.
Myself, I will not buy a house with a rent back. You've sold the house, it's no longer yours, be out at closing. I might possibly buy with a longer closing ( if a rate lock won't expire)
Seriously, if you don't want to move until later, don't list your house until later. If you will only sell with a rent back, you will severely limit your pool of buyers.
We have done this a few times... both for short and long periods. It can work, with the right buyers and sellers (BOTH sides have to be reasonable, cooperative people!)
Delayed closing carries less liability because ownership doesn't change hands til the end.
Rentback is better, with a willing buyer, if seller needs the cash from the sale to find a new place, or to afford the move.
Both will scare away some buyers who can't be flexible. No fault if they can't... some buyers have needs of their own that can't work with an extended process.
The sooner you can close, the better. Anything can change or go wrong. That's why I feel rent back is much better than a delayed close. I guess we got lucky but it worked for us every time we did it.
closing in 30-60 days isn't a delay at all. If you mean the possibility is "close regular time then rent back for 30-60 days"...that sounds like you don't know where your next home is.
each one has risks for the OWNING party.
delayed closing ... buyer could walk; or balk at paying a lock extension which frankly the Seller should IMO then be willing to pay for the extra convenience.
rent-back ... buyer has insurance, seller may cause damage, seller may delay moving out.
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