How to Win Multi-Offer Situations: The Seller Rent-Back

The largest concern I’ve been hearing from clients who want to take advantage of this market and sell is “But where will I go? What do I do if I can’t get an accepted offer on a new home right away?” This is a common problem with many people, but there are ways to make the transition easier and protect yourself as you look for your new home.

The first step is to make the sale of your home contingent upon your closing on a suitable property, or a specific property if you already have your next home under contract. Bear in mind, this has to be included in the remarks of your home’s listing from the very beginning of when it is listed on the market.

In order to avoid the frightening potential of having to close on and vacate your home before you have secured your new property, many sellers and buyers are taking advantage of what is called a Rent-Back, meaning the sale of the home closes and the seller then “rents” their home from the new buyer for a determined amount of time until they can close on their new property and vacate. Not only does this alleviate many of the concerns and logistics of the sell-buy transaction, but it can help a buyer make their offer more appealing if the seller has not yet secured a new property. It also shows a willingness of the buyer to be cordial and helpful in a very challenging market.

What should I be aware of?

There are always drawbacks to any situation, so please consult an attorney to draft any necessary rent-back agreements that cover all terms involved, including any timelines, penalties, or damages. As a buyer, you will also need to notify your lender to confirm whether a rent-back agreement is acceptable with the terms of your loan.