Getting Your Offer Accepted Using A Rent-Back

As the real estate market continues to shift, it is important that home buyers continue to shift their methods as well. In certain areas and price points we have been seeing a rise in multiple offer listings and offer prices above listing price. These situations can be competitive for prospective buyers, and if you are looking to have your offer accepted there are a few strategies that you can employ. The most obvious one is to offer more than the home is listed for, but for the majority of home buyers this option does not make financial sense. There is also the option of waiving inspection and appraisal contingencies, policies that are typically included in a contract. These contingencies are included to offer the buyer protection in case there is a problem with the home that comes up on the inspection report or if the home does not appraise for the value that they are offering for the home. This strategy increases risk for the buyer, putting them in a situation that they may not be comfortable with. 

If you are looking for a strategy to get your offer accepted that does not put you at risk or stretch you financially, you may want to consider a “rent-back.” Formally known as a Post-Occupancy Agreement, this agreement says that the home seller can continue to live in the property for a set period of time while making a pre-specified rent payment to the home buyer. This allows the buyer to close on the sale of the property while also providing the seller with flexibility that they wouldn’t get otherwise. Not every seller is ready to move, they may need to find a new home for themselves or want their children to be able to finish out the school year. A rent-back can be very attractive for sellers in these situations and can make your offer stand out above the others. 

If you want to learn more about how to make a competitive offer or begin your home search, reach out to our team today! We are well versed in a variety of strategies to help you navigate the housing market and get the home that you are looking for. 

To learn more about rent-backs, take a look at this article from Realtor.com.