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Asking as it was something I mentioned to my sister who wants to retire (Fla) and move back to VA or NC. I wondered if she could sell her home while the market is doing so well in Tallahassee with the stipulation she rent the home for 3 months give or take before moving? She wants to sell but is not quite ready to retire/move. I've never heard this done but I am clueless.
I bought a house in Maryland where the seller rented back for a month.
This is rather common when the seller needs more time to move out.
Buyer point of view here. Realtor walks away with fat commission. Seller has hundreds of thousands of my money and pays me rent with it. I'm sitting on my thumbs with no house to move into.
Never gonna happen.
Seller is out by close of escrow. Period.
Here's a good reason for a buyer not to allow that.
I assumed there would be a few issues but it does sound as though some have done this with success. Not sure I would but some may see the benefit of being able to secure a home where the market is tough yet they are not ready to move in.
The benefit? Succeeding in getting a contract.
If the sellers have 27 offers, and 7 of their buyers offer seller possession after closing for two weeks while the sellers' new house is finished, and my buyer has the highest offer by $2000, but wants possession at closing, who do you think gets the house?
My buyer or one of the 7?
In the current market, it is one of the seven.
If this is my buyers' 5th offer in 6 weeks, and several of the previous offers failed because competitors offered sellers possession after closing, what should my buyer do to compete?
As usual, supported by the link he provided, Jack has no clue how things work, but proudly graduated summacumlaude from the Heidi School of Bashing Stuff We Don't Understand.
Last edited by MikeJaquish; 04-20-2021 at 06:08 AM..
I'm in my 3rd house right now. Both times we've sold our old houses we had rent backs from the buyer. The last time we sold our house in 2013, we had a FREE 45 day rent back. Of course that was one of the reasons we took a sightly lower offer. It can and does happen. In today's market, if your sister is selling an "Affordable" property she'll likely get TONS of offers. At least one of them, if not more, would more than likely offer a rent back for a period of time if it meant their offer was selected.
Asking as it was something I mentioned to my sister who wants to retire (Fla) and move back to VA or NC. I wondered if she could sell her home while the market is doing so well in Tallahassee with the stipulation she rent the home for 3 months give or take before moving? She wants to sell but is not quite ready to retire/move. I've never heard this done but I am clueless.
I know that in some states, buyers are having a hard time getting the seller out of the house, even going to court due to the COVID renters moratorium. There is even a California case that closed January 2020 before the moratorium but California refuses to make the seller leave because of it. It should not apply to cases where the seller did not rent but in some states it is so your sister may lose a buyer or 2 if that is their concern. If I was a buyer, I would not put an offer in on a house where the seller needs 3 months because I would need to sell too. It's just too much time for me plus with sellers refusing to leave, I wouldn't chance it.
I know that in some states, buyers are having a hard time getting the seller out of the house, even going to court due to the COVID renters moratorium. There is even a California case that closed January 2020 before the moratorium but California refuses to make the seller leave because of it. It should not apply to cases where the seller did not rent but in some states it is so your sister may lose a buyer or 2 if that is their concern. If I was a buyer, I would not put an offer in on a house where the seller needs 3 months because I would need to sell too. It's just too much time for me plus with sellers refusing to leave, I wouldn't chance it.
The links really are irrelevant in regards to the OP. The OP is asking about a formal rentback, Seller Possession after Closing, or similar title.
The linked story does not relate to a formal leaseback with a contract and consideration among other terms. It relates to squatting because a buyer closed while ignoring the contract they had and the provisions in it.
Buyer point of view here. Realtor walks away with fat commission. Seller has hundreds of thousands of my money and pays me rent with it. I'm sitting on my thumbs with no house to move into.
Never gonna happen.
Seller is out by close of escrow. Period.
Here's a good reason for a buyer not to allow that.
Of course, the thousands of times that these "rent-backs" or "possession after closing" deals work out just fine never make the news because... well, they just aren't news worthy because they're so common. You only hear about the ones that go bad. Nobody writes in to say that everything went fine.
Of course, the thousands of times that these "rent-backs" or "possession after closing" deals work out just fine never make the news because... well, they just aren't news worthy because they're so common. You only hear about the ones that go bad. Nobody writes in to say that everything went fine.
The link does not even consider a rent back. The link may as well be a story about a house invasion or someone who broke in and squatted in a vacant house while the owners were in Cabo.
It is a more interesting conversation than deserves a hijack with an unrelated story.
What happens when the seller damages the property after the settlement?
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