Home : Blogs : Myrtle Beach Real Estate by Mirela Monte : Myrtle Beach Real Estate by Mirela Monte

Problem & Solution Forum: Sellers All Packed Up With Nowhere To Go...

I'm sure you've encountered it. It's a classic problem: Sellers are all packed up; the movers are coming in the morning and the deal falls through. How do you avert this problem?

As a standard procedure in my practice, in an owner occupied home, I contractually always ask for the sellers to rent back the home for a week after closing. Once the loan package is in at the attorney's office, I give them the green light to go to "stage one packing" (start putting away the seldom used items). Once we actually record, I give them the full green light for packing & moving. They have a week at their disposal and it usually works out well. That way I've never had to deal with this problem. I learnt by watching other agents' mistakes.

How about you? How do you deal with this issue? Please share your wise ways!

Your Myrtle Beach Real Estate Connection, Mirela Monte Join The Optimist Group!

Posted by Myrtle Beach Real Estate by Mirela Monte on 04/08/2008 10:56 PM

Comments (10)

Home Selling in the Home Selling Channel

sellers all packed up with nowhere to go, your myrtle beach real estate connection, mirela monte, great realtors doing their jobs well

Originally posted at: Myrtle Beach Real Estate by Mirela : Problem & Solution Forum: Sellers All Packed Up With Nowhere To Go...

This post has been included in South Carolina Information Horry County, SC Information Carolina Forest, SC Information
Post is included in group: Learn to be a Top Producing Listing Agent
Post is included in group: Real Estate Rookie
Post is included in group: Realtors®
Post is included in group: Running a Brokerage
Post is included in group: The Optimist

10 Comments on Problem & Solution Forum: Sellers All Packed Up With Nowhere To Go...

APR

2008

Excellent advice, I had some close calls last year. This should be standard practice!

Is this rent back addressed in the Purchase and sell agreement, or in an addendum later? How do you come to the rent price? Have you met with resistance from buyers?

I would love to know. I'm fairly new, and haven't done this but thought it would be a good idea.

Good Idea Mirela,

Do you ask for the rent back to be free? In Colorado we would put it in the counter offer, or add it to an amend / extend agreement. However if you do it in the A/E agreement there is no guarantee the Buyers will sign it. Or we would notify the Buyers agent and let them know before the offer is made and highly recommend to them they allow for this in their offer.

In SC we have a special form we make a part of the final agreement. It is zip form # 375, titled "Possession by Seller After Closing Agreement". It is a very thorough two page document addressing everything from a per day cost of occupancy to insurance coverage to the hold harmless clause.

I am not very high tech, so I'll have to check with my assistant to see if I can post the form on line for you to download.

Jason & Deanna: Nothing is for free. The Sellers pay a per diem share of the Buyers's cost. If the PITI is $ 2,000 per month, and the Sellers take the week, they pay $ 500. It's all part of the negotiating process. Sometimes Buyers want a large amount of money left in escrow at closing until the sellers move out and the buyers are satisfied with the final walk through.

Pam: I am a proponent of open communication and I offer to talk to the Buyers with their agent present, usually in a 3 way phone conversation. I address all their concerns and they invariably agree. I bet you can come up with an entire list of advantages to the Buyers by doing it this way (one is making the Sellers happy on this one item, so they (the buyers) can get more of what they want....).

Keith: Thanks for the comment! I agree!

APR

2008

In our last listing we negotiated a free rent-back for 30 days due to closing schedules on the Sellers new residence. We have done a week rent-back on several occasions sometimes free other times with a cost as you stated above to the seller. I only ask to see if you did that also. I wonder if our market because it continues to stay strong allows for the buyers to be more flexible in collecting monies on the rent back. We also prepare a standard rental agreement to cover the rent-back period. I like the idea of the "Possession by Seller After Closing Agreement".

Thanks

We recently had a couple of close calls. In our area, it's customary that occupancy is given at closing. With all the changes and tightening up in the lending industry, we are having to be more cautious and are watching the loan commitment letters closely. If we receive something that looks at all sketchy (IE: conditions in a commitment), we address it as early on as possible. I like the idea of the built-in rent back, but I am not sure we could make that work here, especially because it's a pretty strong buyers market.

Katherine: In our market it is customary to give possession at closing also. The loan commitment letter is dandy, but I've been in this business too long, and I've seen a plenitude of other "surprises"... You know the saying: "When momma is happy, everybody's happy". Add to that: "When the Seller is happy, everybody's happy". Giving the sellers what they want will help the buyers get what they want...

Jason & Deanna: Thank you for your input! I'm not sure I understand your question. If you are asking if I sometimes obtain a rent free rental, the answer is yes. It all depends on all the other terms of the agreement.

I'd love to hear some other suggestions for dealing with this issue!