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I don't understand how you can show a house for rent that you don't even own yet.
If I were a prospective renter, I would run as far away from you as possible. I'd turn you in on craigslist.
You will not be able to put it on the MLS.
The current owners are trying to pack and get out. Give them the courtesy to do it in peace.
Who's to say that the current owner's will actually let potential tenants in? If they're smart, they will be unavailable when the buyer wants to show it. I hope they demand proof that these people are vetted as well. No way in hell would I let random strangers from some random buyer bring people into my home. It's still their house until closing.
I can totally see this deal falling apart. There's something very off about the OP.
OK - so I am more than irritated. I have been looking for a home to buy and rent and have finally found the one I want. It hit the market yesterday afternoon, I went and saw it last night. We gave them a full price offer, did not ask for any concessions, allowing them to close when they want. The answer we got back? They want to wait a few days to sign it because they have other showings. So rude! I am so over this market right now.
Sorry - just needed to vent!
That happened to us on a home we really loved. Made a full price cash offer and the sellers were not ready to move.
We had a second choice home and bought that one the next day.
Home #1 sat on market for months before it sold for less than our offer.
I do believe the listing agent should have listened to his or her clients and then communicated to all prospects the timeline for making a decision. This would have set clear expectations for all involved and reduced your frustrations. That didn't happen but the sellers are still within their rights to do this. In my state, if another offer is received the listing agent would contact your agent and say that multiple offers were on the table and that you should submit your highest and best. Hopefully, that's the case where you are.
Back just before the real estate crashed in California, my daughter put her home up for sale. An offer was made, for just under the asking price that was within the range she would accept just $5,000 less than asking price. Agent decided it was not enough, so did not present the offer to my daughter who had moved out of state.
After the crash, she accepted an offer that was $60,000 less than that offer. The selling broker asked her why she had not accepted the earlier offer, and showed her a cop of it in his files. She told him, she had never even seen it. He gave her a copy, and she filled for arbitration between against the listing office. The arbitrator was a retired Judge. His ruling was to pay my daughter $60,000, which their office did. The ruling was based on the agent did not do as required which was present all offers.
Remember, the sellers agent, was going along with what was happening. To not accept the offer and wait to see what else may happen in that first week, is just good business practice in a hot market. If the agent had not presented the contract, the agent would be not doing their job. But if the seller wanted to wait a week to accept offers, that is their right. The agent is also willing to wait, as if the contract was above asking price, they make more money.
Back just before the real estate crashed in California, my daughter put her home up for sale. An offer was made, for just under the asking price that was within the range she would accept just $5,000 less than asking price. Agent decided it was not enough, so did not present the offer to my daughter who had moved out of state.
After the crash, she accepted an offer that was $60,000 less than that offer. The selling broker asked her why she had not accepted the earlier offer, and showed her a cop of it in his files. She told him, she had never even seen it. He gave her a copy, and she filled for arbitration between against the listing office. The arbitrator was a retired Judge. His ruling was to pay my daughter $60,000, which their office did. The ruling was based on the agent did not do as required which was present all offers.
Remember, the sellers agent, was going along with what was happening. To not accept the offer and wait to see what else may happen in that first week, is just good business practice in a hot market. If the agent had not presented the contract, the agent would be not doing their job. But if the seller wanted to wait a week to accept offers, that is their right. The agent is also willing to wait, as if the contract was above asking price, they make more money.
Wow. Good result!
This came up just this afternoon in a local discussion group on the Realtor Code of Ethics and the real estate board Rules and Regulations.
Who's to say that the current owner's will actually let potential tenants in? If they're smart, they will be unavailable when the buyer wants to show it. I hope they demand proof that these people are vetted as well. No way in hell would I let random strangers from some random buyer bring people into my home. It's still their house until closing.
I can totally see this deal falling apart. There's something very off about the OP.
LOL - what exactly seems "off" about me to you? I made an offer and was very clear in that offer what my intentions were with the house and what my requirements are upon signing the purchase agreement. If they then don't allow me to do what they said they would do then they are in breech of contract.
There is nothing wrong or illegal with what I am doing, so long as I am honest with prospective renters that I close on the house in April. Lots and Lots of investors do this, it is smart to not leave a house empty for a month when you could have it rented from day 1.
I would not expect the sellers to show a house I don't even own. Just because that's what a buyer wants doesn't mean it's going to happen. And if a buyer is so cash strapped that they need a tenant in place the day they close, then they really have no business buying a rental unit. And what if closing is delayed? Where's the tenant supposed to go? You'd have to refund their rent and deposit. You could also be sued and lose a significant amount of money in some states. Some states have really strict rental laws. Those treble damages are brutal! Some states allow for up to 3 times the amount of rent! Quick way to bankruptcy if you're already hanging on by a thread.
Love the assumptions on this one. First of all, this is not my first rental - it is my 3rd so I am clearly not cash strapped and "hanging on by a thread" no way a bank would loan money to someone for a 4th (Primary plus 3 rentals) home if they did not have any money and their other 2 rentals were not successful.
LOL - what exactly seems "off" about me to you? I made an offer and was very clear in that offer what my intentions were with the house and what my requirements are upon signing the purchase agreement. If they then don't allow me to do what they said they would do then they are in breech of contract.
There is nothing wrong or illegal with what I am doing, so long as I am honest with prospective renters that I close on the house in April. Lots and Lots of investors do this, it is smart to not leave a house empty for a month when you could have it rented from day 1.
Yep. All of those who say that showing a house before it closes should never be done have never been landlords. It happens more often than people think. And there's nothing wrong with it as long as everyone agrees. Period.
I do this all the time. However, it surprises me how many applicants will want to give me a hold deposit without verifying my interest in the place.
This is why so many people looking to rent are scam victims. Since I am "everybody's mother" I always advise those who come and view my places before the closing that they really need to verify ownership and authority to accept funds. I tell them how to go to the appraisal district website and view ownership history. Then I warn them to demand evidence of authority to lease the place because even if I don't wind up committing the house to them, they have already been prescreened by me before the viewing and I feel I owe it to them to educate them.
I never cash hold deposits until after the closing because I have no legal rights to the property and suffer no financial loss by committing the property to the pending tenants until I am the owner. All this is explained to the applicants and I have them post date the check to the date of closing on the house.
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