Sometimes it's helpful to sell your home before you really want to move. Is there any way you can sell your home so you're sure of the funds available for the new purchase, but continue to live in your old home until construction of the new one is complete.
Get in the Lease-Back or Rent-Back Agreement
The particulars of this strategy differ from area to area, however in the strong seller's market we're experiencing, buyers will often agree to let the seller remain in the your home for a time period as long as lease is paid. In a competitive situation, the purchaser willing to do this will often have the succeeding quote even though there is another offer as high as his.
The contract covering the circumstance mentions the length of time the seller will stay. It can be done with a particular date named or wording that permits the seller to stay up to a specific date with the possibility of her relocating quicker. The quantity can be a repaired figure paid out of the profits of settlement or a regular monthly quantity, or a everyday amount. It is usually, but not constantly, tied to the amount of the home loan payment under the purchaser's new loan. Occasionally there is a deposit against damages, often not. There is typically a clause stating the seller will hold the purchaser safe for any damages to himself or his property which occurs after the sale is consummated and prior to the seller steps.
The attorney who draws up your contract offer can create such an agreement. If you're using online forms, you should be able to find one for this situation. If you're working with a real estate broker, he or she can handle it for you.
An Example
She had had hip replacement surgery and wanted to get away from the drawbacks of the home in which she 'd reared her children. The home was large, had stairs and was located on a large, partially wooded lot with many mature perennials and shrubs.
Her contract to buy required a collection of deposits and a company indication as to her source of funds well before settlement on her brand-new condo. The widow put her house on the marketplace. A young couple with two sons was extremely anxious to buy it. The scenario was competitive. They made the widow an offer. She countered their initial offer. She did not raise their offer rate, which was a little below her asking price. She did not believe the young couple would qualify for a larger loan. Instead, she did something rather creative.
The widow countered with a proposal that she "rent back" for a duration of " approximately" a particular date (a date past her scheduled competitors date on the condominium) in exchange for a modest flat sum to be paid to the buyer at settlement. The total lease back period was less than two months. The flat fee was less than the quantity of the brand-new home loan repayment for the purchasers. Nonetheless, considering that they made no repayment on their new home loan the first month, it had not been too far out of line. The couple truly desired the home, so they accepted the counter offer.
An additional gain, win situation was produced. The widow only needed to move one time and the young couple got a home they probably wouldn't have in a straight bidding war. If you find yourself in a scenario the same as either the widow or the young couple, perhaps you can exercise a similar option.
Get in the Lease-Back or Rent-Back Agreement
The particulars of this strategy differ from area to area, however in the strong seller's market we're experiencing, buyers will often agree to let the seller remain in the your home for a time period as long as lease is paid. In a competitive situation, the purchaser willing to do this will often have the succeeding quote even though there is another offer as high as his.
The contract covering the circumstance mentions the length of time the seller will stay. It can be done with a particular date named or wording that permits the seller to stay up to a specific date with the possibility of her relocating quicker. The quantity can be a repaired figure paid out of the profits of settlement or a regular monthly quantity, or a everyday amount. It is usually, but not constantly, tied to the amount of the home loan payment under the purchaser's new loan. Occasionally there is a deposit against damages, often not. There is typically a clause stating the seller will hold the purchaser safe for any damages to himself or his property which occurs after the sale is consummated and prior to the seller steps.
The attorney who draws up your contract offer can create such an agreement. If you're using online forms, you should be able to find one for this situation. If you're working with a real estate broker, he or she can handle it for you.
An Example
She had had hip replacement surgery and wanted to get away from the drawbacks of the home in which she 'd reared her children. The home was large, had stairs and was located on a large, partially wooded lot with many mature perennials and shrubs.
Her contract to buy required a collection of deposits and a company indication as to her source of funds well before settlement on her brand-new condo. The widow put her house on the marketplace. A young couple with two sons was extremely anxious to buy it. The scenario was competitive. They made the widow an offer. She countered their initial offer. She did not raise their offer rate, which was a little below her asking price. She did not believe the young couple would qualify for a larger loan. Instead, she did something rather creative.
The widow countered with a proposal that she "rent back" for a duration of " approximately" a particular date (a date past her scheduled competitors date on the condominium) in exchange for a modest flat sum to be paid to the buyer at settlement. The total lease back period was less than two months. The flat fee was less than the quantity of the brand-new home loan repayment for the purchasers. Nonetheless, considering that they made no repayment on their new home loan the first month, it had not been too far out of line. The couple truly desired the home, so they accepted the counter offer.
An additional gain, win situation was produced. The widow only needed to move one time and the young couple got a home they probably wouldn't have in a straight bidding war. If you find yourself in a scenario the same as either the widow or the young couple, perhaps you can exercise a similar option.
About the Author:
Jocel Victorino is a property consultant of DMCI Homes Inc. A premier developer of resort-type condominiums in the Philippines. If you are currently looking for a good investment try Arista Condo Paranaque. For Other DMCI Homes Project you may visit Philippines Best Condominiums(www.condosphilippines.org)
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