Rent back for sellers

[Doug Harman]

Hello my name is Doug and I am purchasing a home for 2.5 million in the Bay Area CA.  The owner would like to stay in the home for 2mos after sale.  I'm fine with that but I don't want to pay holding for those two months.  What are my options. Can I ask that the money not be released form the bank until the seller moves out or should I have them pay rent.  In which case the rent could be almost 20k for two months and they will balk at that.

Any other options I'm not seeing.

Thanks

Doug

[Wes Blackwell]

@Doug Harman

This is a very typically scenario for real estate transactions. When it happens with lower priced homes, the sellers usually need the money from the sale to move out.  In higher priced transactions usually the sellers aren't able to get all of their affairs in order to move by the time escrow is over.

Usually what happens is the carrying costs of the property are put onto the seller, usually just PITI. This money is held back in escrow for the buyer prior to the close of the transaction.

But, it all comes back to the fact that everything in real estate is a negotiation.

You might want them to pay market rents instead. Or perhaps charge them nothing at all because you got a great deal or threw in some personal property with the transaction.

I would have your agent discuss this with the other agent and try to arrive at a win-win solution for everyone involved. You carrying costs for PITI to be covered by the seller is a normal thing both agents should be familiar with, and is generally considered fair. Best of luck!