Once you sell a home, you typically will move on to your next home. However, that doesn’t always have to be the case. Renting a home you’ve just sold is certainly an option and it’s worth learning more about.
Reasons to Rent a Home You’ve Sold
People rent homes they’ve sold for a variety of reasons. One of the most common reasons is simply the timing of the sale. Sellers may rent the home for a few more months if they haven’t found a new home yet or if their new home isn’t ready for them. Some sellers might also stay put and rent their home until the end of the school year or until they’ve given proper notice at their job. By renting back their own home, they give themselves time to get everything in order before they move on.
When the seller rents their home from the buyer, it’s called a rent-back agreement. These agreements are legally binding and must be signed by both parties. The seller can request a rent-back agreement anytime before closing. It may be a part of the initial negotiations or requested later on. In general, rent-back agreements don’t exceed 60 days. They are meant to be short agreements to allow the seller more time before moving on. You should be considerate of the buyer’s timeline and needs. They will have to move into their new home eventually. However, you may be able to stay longer if the buyer intends to rent out the property anyway and you can discuss being their first tenant.
Talking With Your Buyer
Not all buyers will follow the same protocol. In order to know what your options are, you need to talk with your specific buyer. Some may let you stay for a few weeks and others could let you stay longer. If you’re lucky, you could find a buyer that will make you the new tenant so you can stay as long as you need to. There are also many different kinds of buyers you will encounter. For example, if you sell to a home buying company you may be able to rent it back. Not all companies offer this, but it’s worth asking.
Renting a home you’ve sold allows you time to transition. You can prepare for your move or simply go from paying a mortgage to paying a more manageable rent. Of course, it will all depend on your buyer and what they’re willing to do.
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