When you find a home you’re interested in, you want to do everything you can to make your offer stand out and grab the seller’s attention.
And, in certain situations, that might include a rent-back agreement.
In certain situations, rent-back agreements can help to “sweeten the deal” and increase the likelihood that the seller will choose your offer over others. But many potential buyers are unaware of how rent-back agreements work and, as such, are missing out on opportunities to use these agreements to successfully buy a home.
Not super familiar with rent-back agreements? A recent article from realtor.com explored some of the most common questions about these type of real estate agreements — and how they can help buyers — including:
How do rent-back agreements help buyers? Rent-back agreements can not only help your offer stand out, but it can also make your offer stronger and more appealing to sellers that need extra time in their house — for example, to find a new home to buy, or to finish out the school year before moving.
How do you include a rent-back agreement in your offer? The good news about rent-back agreements is that including one in your offer is simple; all you have to do is tell your agent. Just make sure that you and your agent are clear on the details before the offer is submitted — for example, how much you’ll charge in monthly rent and how long you’re willing to lease the property to the current owners.
What are the typical stipulations of a rent-back agreement? There are a variety of stipulations generally found in rent-back agreements; for example, you might include stipulations that the tenant keeps the property in good condition, keeps up with home maintenance tasks, and agrees to occasional inspections during the rental period. You’ll also want to protect yourself by stipulating that the tenant must vacate the property at the end of the rental period and that, as the landlord, you’re not responsible for any loss or damage to their personal property while they’re renting.
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