Transitioning from one home to the next can be made much easier when you take advantage of a seller rent-back agreement. Let’s discuss what this is and how it works.
Moving is a complicated ordeal, especially when you’re buying and selling simultaneously.
These transactions are enough to handle on their own without the added task of getting you, your family, and your belongings from one home to the next, so wouldn’t it be nice if you could wait to worry about your next home purchase until after you’ve already closed on the sale of your current house? Aside from easing the logistics of managing two deals at once, doing this would also give you a little extra cash, thanks to the proceeds of your sale.
If this sounds too good to be true, I’ve got news: it isn’t. This scenario is entirely possible, and can be facilitated through an arrangement called a seller rent-back agreement.
A seller rent-back agreement, often simply known as a “rent-back”, is an addendum to the purchase contract which states that a seller can continue living in their former property after the close of escrow for a predetermined period with the stipulation that rent-like payments be made toward the new buyer’s mortgage. This allows you more time to work through your home purchase, while also allowing you to leverage the money from your home sale toward your down payment or other relevant expenses.
The length of a rent-back can vary, but the average is about two weeks. At any rate, rent-backs are an incredible way to make moving less stressful.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.