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Relocation clients and Sales Contingencies

By
Real Estate Agent with RE/MAX Classic Group

I've been working with a couple that wants to purchase one of my listings.  The husband has already moved to the area and has been doing the house hunting.  The wife and remainder of the family is still out of state residing in their home that is currently on the market.  The husband is in a month-to-month rental currently.

The husband flew his wife out last weekend to view the home and they fell in love with it.  They want to buy it and the sellers have already taken ownership of their new home. 

The catch?  The buyers can't close title until they sell their out of state home.

The solution?  Since the husband was already paying rent (at his employers expense) we suggested that he rent the listing until they sell their current home.  This affords the sellers income to offset their dual mortgages, allows the buyers to begin the move-in process, and eliminates much of the concern with regard to the sales contingency.

It now looks like its a go as the employer and the attorneys are signing off on everything.

In this declining market, thoughtful and creative ways to structure deals will allow both buyers and sellers to benefit.  Remember, thinking outside the box may help you reach you end results much more quickly and create many raving fans of your services!

Have a Productive Day,

Scott

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Steve Powell
Fifth Third Bank - Dublin, OH

Another option is a Home Equity Bridge Loan for the full amount of the property on the market.  Interest accrues on the property, but zero payment is due for 6 to 12 months.  This usually gives the homeowner enough time to sell marketable property without dealing with the two payments at once... 

Most banks have versions of this product, some more liberal than others... It' s often the simplest method to resolve the gap without renting any property...

Hope this helps some deals...

Oct 07, 2006 07:17 AM
Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker

Good Job, Scott! Sometimes you just have to think outside the box.

Rich Jacobson, www.KitsapLife.com

Oct 07, 2006 07:28 AM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
I'll be the negative nelly here-i advise against buyer possession vehemently.  There are so many ways things can go wrong before closing....buyer loses a job...buyer dies (yes, it happens)...etc.  And then the seller is stuck with a tenant.  And in NC, if a buyer has possession and can't close, even though you have a signed agreement-the only way to get them out of the house is to evict by the statutes covering tenant/landlord relationships.  by which time the house could be damaged, etc if the people in the house are nasty.  It happens.  Even if you want to think the best of people.
Oct 07, 2006 09:05 AM
Scott Alpaugh
RE/MAX Classic Group - Branchburg, NJ

I, and the sellers, understand the inherent risks, but also, it's a little more pallatable when you have a rental agreement backed by and being paid from a Fortune 500 Company.

This "solution" would not one that I would advise in all cases, but given the current market, the solid agreement from the employer, and other factors, it IS the best scenario for all parties involved.

Have a Productive Day,

Scott

Oct 07, 2006 10:13 AM