“Rent-back agreements can be a win-win opportunity for buyers and sellers.”

Dated: August 14 2021

Views: 86

What is a rent-back? A rent-back is when a buyer offers the seller the right to occupy the property after closing on the sale for a set period of time. If you, as a buyer, were buying that home to be used as a primary residence, your lender would like your rent-back period to be no longer than 60 days. If you’re buying it as an investment property, you can negotiate a rent-back period of however long you like.

To help you understand, suppose that you’re selling your current home on the market while you’re having another home built elsewhere that won’t be ready for some months down the road. In that situation, you’d want to find a buyer who would purchase and close on the home so that you could get the money from the sale, and then rent the home back to you until your other home was finished and you were able to move in.

“Rent-back agreements can be a win-win opportunity for buyers and sellers.”

This situation might appeal to buyers who currently live on leases. If their lease doesn’t end until around the time the seller’s other home is finished, it’s a good idea for them to purchase a home now and lock in a low interest rate until they can move in, all while the seller pays them to live in the home they’ve just purchased. Rent-back agreements can be a win-win opportunity for buyers and sellers.

Always be sure to ask the seller or their agent what would make an offer most appealing to them. If you have any questions about what you can do to make your offer stand out and give you a better chance of winning a bidding war against other buyers, feel free to reach out to me. I’d love to help you.

Blog author image

Georgieann Elliott

An entrepreneur real-estate professional living and working in Northern Utah. Experienced with buyers, sellers and investors. Many hours of service are devoted working with Seniors. The Seniors Real E....

Latest Blog Posts

7 steps to take AFTER YOUR HOME IS DAMAGED BY A STORM

The damage a storm causes to your home can leave you feeling lost and devastated. Concerns about securing your family's safety, restoring your property, and getting your life back together can be

Read More

“Rent-back agreements can be a win-win opportunity for buyers and sellers.”

What is a rent-back? A rent-back is when a buyer offers the seller the right to occupy the property after closing on the sale for a set period of time. If you, as a buyer, were buying that

Read More

Information for the For-Sale-By-Owner

Hey, interesting data facts about For-Sale-by Owners...Every profession has their tools for the trade they are in. A realtor pays to be licensed and for tools to do their job. They see the market

Read More

Sell your Home in the best light....

When it comes to selling a home, first impressions make a huge difference. And sometimes, you only have one shot to convince a potential buyer to take a look at your home and step inside it. You

Read More