“Sure, my home will sell quickly (and hopefully for more money!) but where will I go?”
This was Sarah’s concern when she decided she was ready to sell her townhome in Catonsville. It’s the concern we hear the most from people who want to sell but just can’t figure out how it could work.
So how did we help Sarah accomplish her real estate goals? Read on to find out!
The Art of Timing: Need More Time to Find Your Dream Home?
Ah, the thrill of house hunting! But what if you haven't found the one just yet? This was Sarah’s concern. How would she have time to find her next place? A rent back agreement was the perfect solution! A rent back allows you to sell your home to a buyer and then stay in the house after settlement, renting it from the new owner for a specified period. This gives you extra time to explore the market without rushing into a purchase. We love this solution because it turns the stress way down for our clients.
Wait…a Rent Back? How Does That Work?
The rent back process is simple. Once you've found a buyer for your home, you'll negotiate the terms of the rent back agreement while you’re negotiating your offer. This includes the length of the rental, rent amount, and other conditions. It's a win-win situation: the buyer locks down a property they love, and you get more time to search for and find your next home sweet home. For Sarah’s home sale, we told potential buyers up front that she preferred a 60-day rent back.
Want to increase your odds of scoring a rent back when you sell?
We always say that the condition of your home is the foundation of your selling experience. And it’s SO true. That fresh coat of paint or an updated kitchen could help you seal the deal to securing a free rent back. How does condition impact your ability to negotiate a rent back? Read on….
When buyers tour the home and confirm that the stunning pictures online accurately represent the condition of the home, there’s nothing holding them back from writing an offer. If you choose to skimp on the condition, the buyer starts to consider the negatives of the home. “I’ll need to save up to replace the carpets” or “I’ll have to paint before I move in.” You don’t want the buyer to have ANY reservations. You want them to write an offer with a free rent back!
The Marvel of Multiple Offers: How to Score that Free Rent Back
In a low inventory market, multiple offers are a common occurrence (especially when you’ve taken our advice and made changes based on the stager’s recommendations, making sure your condition is FABULOUS). How do you turn the awesome condition into a chance to negotiate a free rent back? Buyers will be very motivated, and they will craft an attractive offer to get their offer accepted. Apart from having a competitive price, often, they’ll want to sweeten the deal by offering a rent back period for the seller free of charge. This gives you the time you need to find your next home.
Let’s wrap it all up!
If your home is in excellent condition and it’s priced well for this market (that’s another conversation!), you greatly increase your odds of receiving multiple offers which means buyers are competing and they are more likely to include a free rent back!
In a low inventory market, selling and buying a home can indeed be challenging, but not impossible! With the right strategies and a knowledgeable, experienced agent on your side to help, you can achieve your real estate dreams in any market.
Thinking about selling? Reach out to us to set up a meeting at your home!
