by Eric Peterson
on Thursday, January 31st, 2019 at 1:54pm.
If you are planning to sell your home but worried about having to move twice a leaseback may be a great option for you. Last year we helped 17 sellers negotiate a leaseback on their home so it is a process we are experienced with and can explain how it works in more detail regarding your particular situation.
A leaseback is where the seller of a home is allowed to remain in the property for a period of time after closing and is something that can be negotiated between the buyer and seller as part of a real estate contract. Not only is the option to have a leaseback negotiable but also the terms of the leaseback are negotiable.
To add a leaseback to your home sale there is a 2 page addendum attached to the standard contract. In the addendum the terms of the leaseback will be spelled out.
If the buyer is obtaining a mortgage as an owner occupant most lenders will limit the length of the leaseback term to 60 days. When a buyer is paying cash or if the buyer is obtaining a loan for an investment property there is no limit to the time period.
Sometimes the buyer will not charge the seller a rental fee but in most cases the buyer will want the daily rental amount the seller pays to equal their mortgage payment including taxes and insurance. In addition many times the buyer will want the seller to pay an upfront deposit.
If you have been dreaming about moving to another home but having to move twice has you stuck in place contact us at 512-791-7473 or email@example.com a no obligation conversation about how a leaseback can help get you unstuck and moved on to a better life.