If You Need to Stay After the Sale - Lease Back
Sometimes you need the proceeds from the sale of your personal home before you can move out. The most common situation is waiting on a construction of a new home. One of the ways John can help coordinate the two parts of your move is to use a lease-back provision.
Negotiating a lease-back is where you (seller) lease the house back from the buyer (new owner) for up to 60 days. This can give you time flexibility. It is a concession that many buyers will consider. Rent is commonly based on a daily rate of 1/30th of the buyer's new mortgage payment. That way the cost to the buyer is effectively zero. Sometimes the number of days can be flexible. Much is open to negotiation. The limit of 60 days is a lending rule. Buyers who lease a home for over 60 days need to switch to investor financing, often with higher down payments and interest rates. There is no limit when the buyer is paying cash.
Negotiating a lease-back is where you (seller) lease the house back from the buyer (new owner) for up to 60 days. This can give you time flexibility. It is a concession that many buyers will consider. Rent is commonly based on a daily rate of 1/30th of the buyer's new mortgage payment. That way the cost to the buyer is effectively zero. Sometimes the number of days can be flexible. Much is open to negotiation. The limit of 60 days is a lending rule. Buyers who lease a home for over 60 days need to switch to investor financing, often with higher down payments and interest rates. There is no limit when the buyer is paying cash.
