Home offer & concessions in high demanding market

[Tiffani T.]

Hi BP folks!

I am making an offer on a townhome that is fairly well priced in today’s hot, high-demanding market. There are many offers but besides elevating the sales price as a concession, I was given the option to allow seller temporarily renting the home for one week after closing per sellers remarks.

I have never seen this before where buyers would be willing to agree to the terms allowing buyer to stay after purchase has come to closure. Seller noted in remarks that he would like to rent for one week due to unknown reason. I am sure I can be more creative on the contract so we can come to terms but staying for one week after inspection have already completed and closed? I’m a bit eery making this move.

Have you experienced this scenario in any of your purchase? Thanks!

TM

[Cary O.]

Congrats @Tiffani T. on making your offer! It sounds like what you are referring to is a "seller leaseback". According to the National Association of Realtors, nearly 20% of sellers move out after a leaseback period, so it sounds fairly common. Treat it just like any other lease, and clearly stipulate lease amount, security deposit, time period, who pays utilities, lawn care, etc. Do a walk thru before and after to assess condition of the property, and clarify insurance coverage. Usually, the agreed upon leaseback rental amount is paid at closing. The buyer may need the extra time due to needing the funds from the sale to close on a new property, or new property not yet ready, etc. Being flexible with the timing of closing and seller leasebacks can make your offer more competitive in a hot market with multiple offers.