How common are rent backs in this market?
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Anonymous
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We are building our home and it won’t be ready until July. We’d like to try to sell now and have a couple months rent back.
Our realtor has told us about 5-6 month rent backs. But this was last year and wasn’t sure if it was still a thing. We’d probably be looking for a 2-3 month rent back. What’s the general limit of rent backs and are buyers pretty amenable in this market? |
Anonymous
| Mortgage lenders will allow 60 days. |
Anonymous
| As a buyer I already feel taken advantage of with a 2 month rent back. Longer and I would not bid. |
Anonymous
| If they aren’t all cash, most mortgage companies will limit to 60 days. It is pretty common right now to get that, I’m not sure if it will stay common as rates climb. |
Anonymous
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You probably have a much better mortgage rate than the buyers will be getting. Do you value 2 months of their mortgage payment over whatever that is equal to in cash in your offer?
May/June are great months to go and get an AirBNB on a beach and get out of DC. |
Anonymous
| If your realtor thinks 5-6 months of rent backs is possible you need to find a new realtor ASAP. |
Anonymous
| 2 months is still pretty normal in hot markets but agree with PP that 5-6 months seems rare - I’ve only known one case and that wasn’t a real rent buy back, it was an off market deal with a buyer submitting a bid on a house that wasn’t on the market and gave the sellers enough time to sell and make arrangements. |
Anonymous
If their new house is being finished they can’t be three hours away. Got to stay on top of that ish. |
Anonymous
Oh brother  why would you even tell your lender? That is ridiculous.
it's a rent-back, not a "rental". #hit happens. You start out intending to do a 30 day because you need to find a house. That 30 turns into 60 because you still can't find a home. |
Anonymous
You can't not tell your lender. The provisions of the rent back are in the contract, which the lender gets. Are you saying the buyer should accept the seller arbitrarily extending it because they cannot find a house without any protection for the buyer after it's legally their house? |
Anonymous
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OP - I’ve heard of a 6 month rent back but I would think that’s rare and it happened last year.
OP, if you have a long closing (45 day), you could drag out your closing a bit. House on market may 1, take 2 weeks to show and collect offers, agree on a price and then have a 45 day close. That takes you to June 30. Maybe offer the buyer some money to give you an extra few weeks of rent back or something. |
Anonymous
Put your house on the market the weekend after Easter, Get offers the following week, Do a 30 day close , 60 day rent back and you are in late July. If you can wait 2 weeks and put the house on the market the 1st week of May - you can drag out your rent back to early August and give yourself some buffer in case you new home is not ready. |
Anonymous
| 60 day rent back seems like no problem. You’re going to basically limit yourself substantially with anything longer than that. I’d imagine only cash buyers looking forward a discount. |
Anonymous
That's what we did when we sold. Was supposed to be a 30 day rent back and that was in the contract, Then we had to extend to 60 days, which turned into almost 90 days. We drew up a separate short term rental contract at the start of the 60 days and we got rental insurance. Nothing arbitrary about it. We kept in constant communication with the buyers and we continued caring for the home as if it was ours. |
Anonymous
| Are we talking about a rent back where you actually pay the rent or where the buyer gives you a free rent back, which I’ve seen mentioned here? |