How common are rent backs in this market?
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Anonymous
Does it matter? |
Anonymous
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To answer the question, every offer we wrote for a home currently occupied it included a 30-45 day close followed by a 30-60 day rent back. One was 45 day
close plus 60 days because they were foreign service and that was the government relocation timeline. We eventually won a home that was unoccupied/staged and obviously no rent back. Every offer we wrote our agent either found the rent back request (demands?) in the notes or called the seller’s agent to ask what the sellers wanted. I think if you’re upfront and not over priced in this market you’ll get a decent offer and the rent back. |
Anonymous
It matters because I’m a buyer, and I’m wondering what is common/expected. I would be willing to give the seller a rent back where they pay. I would not be willing to give free rent. But I have no idea what other people are doing in this crazy market. |
Anonymous
Common practice is the seller pays a rent amount that is equivalent to your new monthly mortgage amount. For example, even if rentals in your area are going for $3K a month but your mortgage is $4500, they pay $4500. |
Anonymous
In this market if it's a multi-offer situation you would almost certainly need to offer free rent back to be competitive. |
Anonymous
| Rent backs are vert common here in Arlington, my neighbor got 2 months free rent back (closed in March 2022), a friend also recently did 2 month rent back. |
Anonymous
Common practice, but not in the current market. Agree you need to offer free to win in a competitive situation around here. |
Anonymous
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We lost an offer recently where the sellers asked for 60 days free rent back - we said fine, not thrilled to have to do it but that’s the game right now, put it in our offer. As the sellers are reviewing, it’s down to ours and one other (same top price, both waived everything). The sellers agent comes back and says “Oh yea forgot to mention, the sellers actually need 90 days free rent back” (on top of the 45 day close). They want it to be you, but you have to agree.” We said we couldn’t (current lease is up this summer and we would’ve been without a home for a month), so they went with the other buyers. Our agent even said “you can just not tell your lender!” and my head almost exploded. We are first time buyers, LYING to our lender sounds beyond foolish.
The imbalance in the market right now is disgusting - I don’t fault any seller for trying to get the best deal, but there’s a point where it just feels predatory. They purposely didn’t mention the 90 days until after we paid for pre-inspection and submitted the offer. If we had known upfront, we would have passed. But as long as buyers keep agreeing to these ridiculous demands, sellers will continue to take every ounce of flesh they can. It’s gross. |
Anonymous
Why would the buyer agree to this? Don't they need to move in? |
why would you even tell your lender? That is ridiculous.
Anonymous
Because they are first time buyers and have flexibility. |
Anonymous
| As potential buyers, we've seen a fair number of 60 day rent backs, presumably to finish out the school year. Seems that'd be typical. |
Anonymous
+1. i'd go 90 d max |
Anonymous
| 60 day rent back very common in the spring market, no seller wants to move before school is out, also in the DC area, many sellers have other reasons that needs rent back (in military, foreign services, etc.) |
Anonymous
We had to offer free 60-day rent back on a house we liked recently, in order to be competitive. (didn’t get the house) |
Anonymous
| We did 30 day close with a 30 day rent back. Then when we sold our place, we asked for 30 day close - 14 day rent back to make sure we had wiggle room. Could have done a 45 day close, I suppose but I would rather know earlier if something is going to blow up at the last minute. |