In this sellers’ market, buyers are doing a lot to sweeten the pot. One of the most enticing strategies that they use is called a rent-back agreement. This option can make the difference between two otherwise identical offers—and it may even be preferable to some higher ones. If you want to put your house on the market but need a little extra time before you move, here’s how a rent-back agreement can benefit you as a seller.
What is a rent-back agreement?
Rent-back agreements are an established possibility in the real estate market. They allow a seller to stay in a sold home after closing, usually in exchange for rent. Some buyers may choose this tactic and opt to waive rent entirely, making an attractive offer even more tempting.
Know that it’s not long-term.
You may see the word “rent” and think of year-long leases. Rent-back agreements are advantageous, but they do not typically cover a long period of time.
Usually, they will give sellers an extra couple of weeks to live in their old homes before they officially move.
Give yourself extra time.
Moving can be stressful! Whether you’re packing for just yourself or for several people, the entire process is extensive.
A rent-back agreement can give you more time to pack, clean, and leave. It’s possible that your buyer will appreciate the extra time too!
Expect some possible charges.
In addition to rent, you may also need to place a deposit with a rent-back agreement. That way, your buyer can have a way to cover any accidental damage to their new home.
Have another option in between places.
With this fast-moving market, your sale may close quickly. It can leave you with a little time before your new home or apartment is ready. Employing a rent-back agreement can prevent this problem entirely.
Use it for peace of mind.
Sometimes, you may be all set to move into your new place, only to realize that the old owners have a cloud on their title, or some other unforeseen complication. Then, you may actually be closing days or weeks later than intended.
One of the ways a rent-back agreement can benefit you as a seller is simply the peace of mind it provides.
Summary
It’s an exciting time for sellers—and not just because it’s National Homeownership Month. You can enjoy extra advantages—and enjoy a much easier move.
Your Realtor knows a wealth of strategies to improve your time navigating the housing market, such as how a rent-back agreement can benefit you as a seller.
If you want to learn more about your options, reach out to Ryan Roberts here. You can also find more buying and selling tips on the blog.
