A hot seller’s market is great when you are the one selling a Jersey Shore home. Multiple offers. Fast sale. Awesome! But sellers become buyers. Then, they face the same struggles that the person who bought their home faced. Stiff competition. Low inventory. Potentially long wait times to find a home and get their offer accepted. For time-strapped home sellers, a rent-back agreement might provide you with a little bit of time you need.
Rent-Back Agreement
What is a Rent-Back Agreement?
A rent-back agreement allows the seller to live on the property after the close of escrow for a specified period of time. Typically, these agreements last for 30 to 60 days. During that time, the seller agrees to pay a set amount of rent for the buyer allowing them to stay on the property. Essentially, the previous owner becomes the new owner’s tenant for this time period. After that, the seller must vacate. This may include a refundable security deposit to cover any damages incurred during the rent-back period.
How it Helps the Home Seller
For one thing, this increases your chances of only moving once. It saves you the hassle of moving into a temporary rental unit and then having to quickly move again into your next Jersey Shore home after you purchase it. Let’s say that you found a new home you love in the middle of selling your current home. But the escrow on your new place does not close until a week or two after the final sale of your current home. Or maybe you built a home from the ground up but it will not be complete for another month. In order to seal the deal on your current home, a buyer may consider offering a rent-back agreement to sweeten the pot.
How it Helps the Home Buyer
Do you need to move into your new Jersey Shore home right away? If you can afford to be flexible, consider adding a rent-back agreement as part of your offer. Keep in mind, though, that you basically become the landlord when the seller stays on. If anything breaks or falls into disrepair during this rent-back period, you will be responsible for taking care of it. Plus, if they decide to not honor the timeframe set forth in the agreement, you might end up taking things to the courtroom to start eviction proceedings. However, this rarely happens. Sellers tend to want to get on to their next property as soon as possible. But, it is still something to consider before you make this offer.
2022 Jersey Shore Beach Badges
Just another reminder. Jersey Shore beach badges are currently available for sale for the 2022 season. To get the best prices for them, you must purchase them by the end of May. Starting Memorial Day weekend (May 27th to the 30th), a badge inspector will be on hand at each Jersey Shore beach to check for a current beach badge. Everyone aged 12 or older must carry one on their person at all times when visiting the beach. So, do not delay. Get yours today!
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate