Lease back and home purchase (squatters, house, buyer)

[sacguy71]

So my agent had me put a 15 day free lease back clause in my offer letter today for a home that has SIX offers now. Did I screw myself and can I back out of the contract without losing money before inspections and appraisals?

[semispherical]

Originally Posted by sacguy71

So my agent had me put a 15 day free lease back clause in my offer letter today for a home that has SIX offers now. Did I screw myself and can I back out of the contract without losing money before inspections and appraisals?

If the seller is still entertaining offers, you don't have a contract yet.

It sounds as though you have cold feet even before you have purchased the place. If you are that deep into second thoughts, just withdraw your offer.

[mixxalot]

Smart call leaseback screws the buyer and helps the seller. Even in a hot market, too much risk as plenty of homes still on the market. Once COVID ends, inventory will hopefully increase and once the FED stops keeping rates low then perhaps prices may drop here.

[hd4me]

Originally Posted by mixxalot

Smart call leaseback screws the buyer and helps the seller. Even in a hot market, too much risk as plenty of homes still on the market. Once COVID ends, inventory will hopefully increase and once the FED stops keeping rates low then perhaps prices may drop here.

Prices may drop but if interest rates rise the monthly payment may be a wash

[sacguy71]

True well I was outbid anyways so back to looking. Too much competition now for homes here and low inventory is bad time for home buyer who cannot pay 100k over asking price for a 50 year old home lol. Getting as bad here as the bay area.

[SFBayBoomer]

Originally Posted by mixxalot

Smart call leaseback screws the buyer and helps the seller. Even in a hot market, too much risk as plenty of homes still on the market. Once COVID ends, inventory will hopefully increase and once the FED stops keeping rates low then perhaps prices may drop here.

In a hot market, it is smart to offer the seller something the seller wants, and that something is quite often a free leaseback, especially during this pandemic, and definitely for older sellers who are living in the house at the time they sell and who may need more time and effort to move out of a home they have lived in for many decades.

The buyer's agent probably called the seller's agent and said "what is it that the seller wants?" (which may not be in the listing), and then advised his client, the buyer, accordingly.

Of course, if you don't want to offer a leaseback, don't put it in the offer, but expect that in a multiple bid situation in a hot market, your offer won't be attractive to the seller.

[sacguy71]

Well there were already way too many offers on that home. For future offers, I will put in a contingency that the home be vacant of squatters and tenants at closing or no deal. That way I get my deposit back and don't have to deal with evicting people after purchase and can actually move into a home that I purchased.

Homes without pools are not selling nearly as fast so I will just get nice home with big yard and put in pool later on. Less competition that way and lower price too. People are scrambling for homes with pool due to COVID shutting everything down but once COVID ends the gyms open and pools become available again.