How a Sale-and-Leaseback Solves Houston Home Seller Problems
If you’ve been hesitant to sell your Houston home because you’re worried about timing your move, there is a solution! A sale-and-leaseback contingency could be all that you need. Here’s how it works!
A sale-and-leaseback contingency allows you to stay in your current home after the closing date, instead of immediately surrendering occupancy. This allows you to collect your sales proceeds, and have more time to close on your new home, or to coordinate your move, or solve any other issue that requires buying time.
There are some conditions to consider. You will need to be specific about when you will vacate the property, and be prepared to honor that date, even if your issue is still unresolved by that time. Buyers may be willing to accept your original arrangement, but extending it out further can be problematic for all parties involved.
You will also need to pay rent to the buyers for your period of post-closing occupancy. This is usually based on prevailing market rents. Of course, the exact amount of this rent is negotiable. For the best strategic position, offer a single lump sum in exchange for your entire occupancy period.
Finally, you may be responsible any for damages that occur to the home during your post-sale occupancy. You will likely be responsible for maintenance, utilities, and possibly other expenses. The exact lines of responsibility are open to negotiation. It’s wise to document this part of the agreement in detail, to avoid misunderstandings later on. As negotiation experts, we can help you obtain the best terms for your needs!
Not all home buyers will be equipped to handle a sale-and-leaseback contingency. But some may jump at the chance to work with you, because it could provide them with an additional credit towards their closing costs, in the form of your rent. They may also welcome having more time to prepare for their own move.
With Houston homes selling at a brisk pace, a sale-and-leaseback contingency helps you capitalize on today’s market conditions, while giving yourself extra time to transition to your new home!
Obtaining the expert advice of the KW Energy Corridor Team is the first step in a successful home sale! Contact us today for your personal real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079