Renting Back After Your Home Is Sold

Renting Back After Your Home Is Sold - Sometimes it helps to sell your home before you really want to move out. This usually happens when you are having a new house under construction, but are unsure of the completion date.

Renting Back After Your Home Is Sold

Is there a way to sell your home so that you are sure of the funds available for a new purchase, but continue to live in your old home until construction is complete. Yes, yes with relocation strategy.

Entering a sale - sublease or sublease

The details of this strategy vary from state to state, but in today's thriving seller market, buyers often agree to let sellers stay. in the house for a period of time as long as the rent is paid. In a competitive situation, a willing buyer will often have a winning bid even if there is another bid as high as their own.

The location agreement stipulates the length of the seller's stay.

This can be done with a specific named date or wording that allows the seller to stay until a specific date with the option to move out earlier. This amount can be a fixed amount taken from the payment proceeds or a monthly amount, or a daily amount. Usually, but not always, tied to the amount of the mortgage payment on a buyer's new loan. Sometimes there is a damage deposit, sometimes not.

There is usually a provision that the seller will release the buyer from liability for any damage to themselves or their property that occurs after the closing of the transaction and before the seller moves out.

The attorney writing your contract offer can create such an agreement. If you use online forms, you should be able to find one for this situation. If you work with a real estate broker, they can do this for you.

An example

I recently saw a very good example of this idea in action.

An elderly widow has contracted to build a one-story apartment in a new community providing all exterior maintenance services. She had undergone hip replacement surgery and wanted to escape the inconveniences of the home in which she raised her children. The house is large, has stairs and is located on a large, partially wooded site with many perennials and shrubs.

The house and garden are beautiful, but in dire need of maintenance.

His purchase agreement required a series of deposits and a sure sign of the source of his funds long before payment for his new apartment.

The widow built her house on the market.
A young couple with two sons were eager to buy it. Competitive situation.
They made an offer to the widow. She objected to their initial offer.
She didn't raise their asking price, which was slightly below her asking price.
She does not believe the young couple will qualify for a larger loan. Instead, she did something quite creative.

The widow protested by offering to "lock" him for a period of time "until" a certain date (a day beyond his scheduled apartment competition date) in exchange for a sum of money.

modest money paid to the buyer for payment. Total rental payback period is less than two months. The fixed rate is lower than the new mortgage payment to the buyer. However, since they made no new mortgage payments for the first month, that shouldn't be too stressful. T

he couple really wanted a house, so they accepted the betrayal.

A win-win situation has been created. The widow only had to move out once, and the young couple got a home they probably wouldn't get in a direct bidding war. If you find yourself in a situation similar to that of a widow or a young couple, you can find a similar solution.

Summary:

Sometimes it’s helpful to sell your home before you really want to move. This often happens when you are having a new home built, but aren’t sure of the completion date. Is there any way you can sell your home so you’re sure of the funds available for the new purchase, but continue to live in your old home until construction of the new one is complete. Yes, there is with the renting back strategy.

Keywords:

rent back, renting back

Renting Back After Your Home Is Sold