Selling your home can come with all sorts of challenges. One of these challenges is finding a place to live before you close and move out.
It’s not uncommon for sellers to find themselves in a situation where they have a buyer lined up but nowhere to go, whether it’s because their new house hasn’t been completed or they simply haven’t yet found a new place to buy. If this is the case for you, one potential solution is to sign a rent-back agreement with your buyer.
What Is a Rent-Back Agreement?
A rent-back agreement is an arrangement in which the seller agrees to continue renting the property from the buyer for a set period of time. This can be a good option for sellers who need extra time to find a new place to live if the buyer doesn’t have to move in right away. It’s worth noting that this is generally a short-term agreement.
The Pros and Cons of a Rent-Back Agreement
Arguably the biggest benefit to a rent-back agreement is that it will give you time to find a new place to live. The last thing you want to do is to be forced into moving, putting everything in storage, and having to rent an apartment if that’s not what the plan was. On top of that, you’ll also deal with much less stress since you won’t have to worry about finding new living arrangements on top of everything else that comes with selling a house.
However, there are a couple of drawbacks. First, the buyer needs to agree. This means the buyer needs to be in a situation where they don’t have to move in right away. Such a buyer can be hard to find. Secondly, it puts you at a disadvantage as far as negotiations are concerned. You may have to accept a lower offer if the buyer knows you need something.
Consider Signing a Rent-Back Agreement
If you’re in a situation in which you need to sell your house but don’t have anywhere to go yet, you may want to consider finding a buyer willing to sign a rent-back agreement. Be sure to contact us at Randy Lindsay today for more advice on selling your home.