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.
Enter the Lease-Back or Rent-Back Contract
The particulars of this technique vary from area to area, however in the strong seller's market we're experiencing, purchasers will often agree to let the seller remain in the house for a time period as long as lease is paid. In a competitive situation, the buyer willing to do this will frequently have the succeeding proposal even though there is another offer as high as his.
The contract covering the circumstance mentions the length of time the seller will continue to be. It can be finished with a specific date named or wording that allows the seller to stay up to a specific date with the possibility of her relocating earlier. The quantity can be a fixed figure paid of the proceeds of settlement or a regular monthly amount, or a day-to-day quantity. It is usually, but not constantly, tied to the amount of the mortgage payment under the buyer's new loan. Often there is a deposit against damages, occasionally not. There is typically a clause stating the seller will hold the buyer safe for any damage to himself or his residential property which occurs after the sale is consummated and before the seller moves.
The lawyer who draws up your contract offer can produce such an agreement. If you're utilizing online kinds, you must be able to discover one for this situation. If you're dealing with a real estate broker, she or he 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 needed a collection of deposits and a firm indicator as to her source of funds well before settlement on her new condominium. The widow put her your home on the marketplace. A young couple with 2 sons was really anxious to buy it. The situation was competitive. They made the widow an offer. She countered their original offer. She did not raise their offer cost, which was a little below her asking price. She did not believe the young couple would qualify for a bigger loan. Instead, she did something rather creative.
The widow responded to with a proposal that she " lease back" for a period of "up to" a specific date (a date past her scheduled competitors date on the condominium) in exchange for a modest flat sum to be paid to the purchaser at settlement. The total rent back period was less than two months. The flat charge was less than the quantity of the new mortgage payment for the purchasers. Nonetheless, because they made no repayment on their new home loan the first month, it had not been too far out of line. The couple really desired the house, so they accepted the counter offer.
Another succeed, win scenario was produced. The widow just had to relocate one time and the young couple got a home they most likely wouldn't have in a straight bidding war. If you find yourself in a situation similar to either the widow or the young couple, maybe you can work out a comparable solution.
Enter the Lease-Back or Rent-Back Contract
The particulars of this technique vary from area to area, however in the strong seller's market we're experiencing, purchasers will often agree to let the seller remain in the house for a time period as long as lease is paid. In a competitive situation, the buyer willing to do this will frequently have the succeeding proposal even though there is another offer as high as his.
The contract covering the circumstance mentions the length of time the seller will continue to be. It can be finished with a specific date named or wording that allows the seller to stay up to a specific date with the possibility of her relocating earlier. The quantity can be a fixed figure paid of the proceeds of settlement or a regular monthly amount, or a day-to-day quantity. It is usually, but not constantly, tied to the amount of the mortgage payment under the buyer's new loan. Often there is a deposit against damages, occasionally not. There is typically a clause stating the seller will hold the buyer safe for any damage to himself or his residential property which occurs after the sale is consummated and before the seller moves.
The lawyer who draws up your contract offer can produce such an agreement. If you're utilizing online kinds, you must be able to discover one for this situation. If you're dealing with a real estate broker, she or he 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 needed a collection of deposits and a firm indicator as to her source of funds well before settlement on her new condominium. The widow put her your home on the marketplace. A young couple with 2 sons was really anxious to buy it. The situation was competitive. They made the widow an offer. She countered their original offer. She did not raise their offer cost, which was a little below her asking price. She did not believe the young couple would qualify for a bigger loan. Instead, she did something rather creative.
The widow responded to with a proposal that she " lease back" for a period of "up to" a specific date (a date past her scheduled competitors date on the condominium) in exchange for a modest flat sum to be paid to the purchaser at settlement. The total rent back period was less than two months. The flat charge was less than the quantity of the new mortgage payment for the purchasers. Nonetheless, because they made no repayment on their new home loan the first month, it had not been too far out of line. The couple really desired the house, so they accepted the counter offer.
Another succeed, win scenario was produced. The widow just had to relocate one time and the young couple got a home they most likely wouldn't have in a straight bidding war. If you find yourself in a situation similar to either the widow or the young couple, maybe you can work out a comparable solution.
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 DMCI condo for sale (http://www.condosphilippines.org/listings/arista-place/). For Other DMCI Homes Project you may visit Philippines Best Condominiums(www.condosphilippines.org)
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