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View Poll Results: As a home seller I think the following about doing a rent back
Waste of time because 99% of the time the house will close on time. 6 25.00%
Nice to have but most buyers will reject a rent back in the sales contract 10 41.67%
I won't sell a home without a rent back of at least 15-30 days. It protects me! 8 33.33%
Voters: 24. You may not vote on this poll

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Old 07-06-2020, 09:29 AM
 
67 posts, read 42,047 times
Reputation: 59

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Did you do a rent back when you sold your home?

Many buyers are not interested in being a landlord and want to get possession of the house as quickly as possible. But a friend got burned badly when he did not have a rent back and rented an apartment two weeks before he was going to close on the sale of the house. He paid the rent, security deposit and signed a lease on the apartment and started to move things slowly over to the apartment. The house was empty a week before the scheduled closing.

The day after his home was emptied and he had moved into the apartment the buyer of the house lost her job and the closing was canceled. It took months to sell the house empty of furniture and in a changing economy. It eventually sold but for far less money than expected and he had to pay rent and mortgage at the same time for a long time.

What do you think about rent backs as a buyer and seller?
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Old 07-06-2020, 09:45 AM
 
Location: Florida -
10,136 posts, read 13,135,633 times
Reputation: 21437
?? Not sure how a rent-back agreement would have helped the seller in this situation, since the buyer was financially unable to close and could not be its landlord. Are you suggesting that the seller should have given the potential buyer a rent-back agreement - so the buyer could/would rent the house if the sale fell through?

I've seen rent-back agreements used by sellers when they are not quite ready to move out, and the buyer is also not quite ready to move-in. In that instance, a Rent-back is a good thing and benefits both parties.

Still, it's not clear how you think a Rent-Back agreement would have helped your friend (?) Even if they had a Rent-Back agreement, the seller alone made the decision and choice to move-out of the house and obligate themselves to an entirely independent lease agreement, prior to closing. That's the "lesson to be learned" in this situation!
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Old 07-06-2020, 09:56 AM
 
Location: Kentucky
13 posts, read 5,624 times
Reputation: 16
I'm guessing because of "no rent back" he decided to rent an apartment . If he had an agreement with the buyer, he would have still been in the home.
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Old 07-06-2020, 10:04 AM
 
Location: Brentwood, Tennessee
49,943 posts, read 52,337,927 times
Reputation: 98359
Rent-backs are usually very specific to each situation. There isn't a logical way to say they are "all" a waste of time or essential.

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Old 07-06-2020, 10:14 AM
 
Location: Cary, NC
39,018 posts, read 67,591,940 times
Reputation: 39915
I would move before selling, every time.
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Old 07-06-2020, 10:16 AM
 
Location: The Triad (NC)
31,928 posts, read 73,469,488 times
Reputation: 38869
Quote:
Originally Posted by selling home View Post
What do you think about rent backs as a buyer and seller?
It's about the worst way for a buyer (or seller) to manage having a time lapse between addresses. Plan better.
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Old 07-06-2020, 10:20 AM
 
1,734 posts, read 1,351,470 times
Reputation: 2623
When buying my home the seller asked for a rent back just before we were scheduled to close. If I remember correctly they were asking for about 4 weeks.. this is basically what I said to them:

Mortgage, taxes and insurance for the month would be $2,500. I'd also need storage and to rehire movers to move everything from storage to the home $2,000. I'd need a place to live for the month short term $2,000. I'd also need to be compensated for the inconvenience $1,000.

So I said they could pay $7,500 for the extra month because that is what it would essentially cost me... they were then magically able to get out of the home on time.
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Old 07-06-2020, 10:22 AM
 
1,734 posts, read 1,351,470 times
Reputation: 2623
When buying a rental property the owner asked for a 2 month rent back which was $400 over my mortgage and expenses... that actually worked out like a charm as the mortgage payments didn't kick in for 2 months. So I walked into the property already $2,800 ahead.
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Old 07-06-2020, 11:10 AM
 
18,321 posts, read 3,985,497 times
Reputation: 31792
We rented to a seller once. Church going couple with adult children, business owners who begged to be able to stay in the beautifully decorated home over Christmas. It got unpleasant to say the least. When I sign the check I want the key!


Even with loss of employment cancelling a closing is not a stroke of a pen with nothing for the seller. It is a calculated risk.
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Old 07-06-2020, 11:31 AM
 
Location: North Idaho
27,920 posts, read 37,961,692 times
Reputation: 61092
A couple of different times I've had serious problems with sellers who refused to get out. No way on God's Green Earth would I ever allow a seller to rent back.


You sold it. It isn't yours any more. Get out.
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