You’ve decided you need to sell your home as-is to a home buying company. That’s often the easiest way to get a fair offer for an as-is home. Usually, sellers move out sometime around the closing process. That doesn’t always work for everyone though. If you need more time before moving out, you could ask the company for a rent-back agreement.
Pros and Cons of a Rent-Back Agreement
Arguably the biggest benefit of a rent-back agreement is that it means you’ll only have to move once if you don’t have things sorted with your next home yet. Otherwise, you’d have to pack everything, find somewhere to put it, and find a short-term rental or hotel to stay in until you can move into your new home. That’s a lot more work than negotiating a rent-back agreement that lasts until you can move. The agreement can also benefit the buyer since you’ll be paying rent.
On the side of the cons, renters are often required to carry renter’s insurance. You’ll probably have to find and pay for a policy. The buyer will have to wait to start the renovation process, a regular occurrence after buying an as-is home.
Negotiating a Rent-Back Agreement
Not all buyers are interested in rent-back agreements. You may have to do some convincing to make it happen. Do what you can to make yourself look like a responsible renter who will take good care of the property. Even if you sell as-is, do your best to keep up with upkeep and maintenance. Pay attention to your finances and take steps to boost your credit score. This makes you look more reliable and less likely to be late or skip rent payments.
Drafting the Agreement
Once the company has agreed to a rent-back agreement, the agreement has to be drafted. The contract should include the rent, security deposit, term of the lease, insurance requirements, and who is responsible for maintenance, emergency repairs, and utilities. Remember to include terms governing the access the new owner has to the property too. Once both parties have carefully reviewed the contract, get it signed by both seller and buyer.
Rent-back agreements are a great option for some sellers, especially if you haven’t quite worked out all the details about where you’ll live next. If you need a rent-back agreement, talk to WNY Home Buyers. Our goal is to help sellers solve their real estate problems. Let us help you solve yours.
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