Having cold feet about a house because of renting back

[Anonymous]

We toured a house that fits 80% of what we like in a dream house and have been thinking of putting an offer in. As we are thinking of the number, we start having cold feet about it. The seller asked to close late and want a rent back for 2 months. We realized that 1)would make it hard for us to sell our current place 2) we started having a sense of the market is changing, not as hot as before. At least, we have become more hesitant to add much over the listing price, while before we always had to add 100K and still lost the bid. Is people doing the rent back thing because they are trying to catch the heat and make the most $ out of it?

[Anonymous]

I would push back closing. I would not do a rent back.

[Anonymous]

Anonymous wrote:I would push back closing. I would not do a rent back.

lol neither you nor OP would buy this home

[Anonymous]

If you can’t afford both houses I would not put an offer on this house. Sell first.

Fed is raising rates TWENTY-FIVE basis points in a week. Forget taking away the punch bowel, they taking a sledge hammer to it.

[Anonymous]

Anonymous wrote:If you can’t afford both houses I would not put an offer on this house. Sell first.

Fed is raising rates TWENTY-FIVE basis points in a week. Forget taking away the punch bowel, they taking a sledge hammer to it.

PP can you explain what this means?

[Anonymous]

Anonymous wrote:I would push back closing. I would not do a rent back.

why?

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you can’t afford both houses I would not put an offer on this house. Sell first.

Fed is raising rates TWENTY-FIVE basis points in a week. Forget taking away the punch bowel, they taking a sledge hammer to it.

PP can you explain what this means?

I'm not PP, but the federal reserve has said they will raise rates on 3/12. The 30 year mortgage rate is based on the 10 year, which has skyrocketed over the last few months. Next week is the first of a potential/suspected 7 raises in the coming year. Houses are about to cost a lot more / be worth less. Less competition due to rising rates until press settles.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would push back closing. I would not do a rent back.

lol neither you nor OP would buy this home

I would not want a rent back house as you cannot see what is going on with the house with all the stuff and what if they don't move out? They should not sell their house until they are actually ready to move. Their housing is not my problem. Once your house is sold, get out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you can’t afford both houses I would not put an offer on this house. Sell first.

Fed is raising rates TWENTY-FIVE basis points in a week. Forget taking away the punch bowel, they taking a sledge hammer to it.

PP can you explain what this means?

I'm not PP, but the federal reserve has said they will raise rates on 3/12. The 30 year mortgage rate is based on the 10 year, which has skyrocketed over the last few months. Next week is the first of a potential/suspected 7 raises in the coming year. Houses are about to cost a lot more / be worth less. Less competition due to rising rates until press settles.

How is everyone feeling about this? I’m torn. We need a bigger house and so I think we just have to keep going but I’m worried about buying high w higher rate after next week and then my house selling lower bc things cool in the coming months.

[Anonymous]

I think you just have a case of winner’s curse. Since you’re so used to losing you’re actually disappointed you found a house you were willing to pay the most for.

[Anonymous]

I did a two month FREE rent back in November. This is not uncommon. I would not wait for rates to rise. You will be kicking yourself.

[Anonymous]

If you really want or need the house, a rent back won’t matter to you at all.

[Anonymous]

My nephew did a free “rent back” for 90 days in Colorado this past fall. That’s the market out there. If you really want the house and want to lock in your mortgage rate now, then go for it. Yes there could be some problems, but there is also risk in waiting as well.

[Anonymous]

We had a rent back for 45 days to allow the tenant in the house to move. We charged a very high rent to disincentivise them to stay (close to 6,000/m). They trashed the house when moved out. That was in 2020. But we wouldn't be able to get that house for that price without this compromise. This strategy gave us 25% appreciation in two years. So I don't regret it.

[Anonymous]

Anonymous wrote:We had a rent back for 45 days to allow the tenant in the house to move. We charged a very high rent to disincentivise them to stay (close to 6,000/m). They trashed the house when moved out. That was in 2020. But we wouldn't be able to get that house for that price without this compromise. This strategy gave us 25% appreciation in two years. So I don't regret it.

Were you at all afraid they would refuse to move out? Especially in 2020 when there so many courts and other agencies were shut down/barely operating?