What Is a Rent-Back Agreement? A Godsend to Home Sellers.‍

In the current San Antonio, real estate market, lease-back or rent-back agreements have become increasingly popular among sellers. A rent back agreement basically means that the sellers live in the home for a certain amount of time after the closing day. In this instance, there can be compensation given to the buyers for the duration of the seller's stay or it can be a part of the initial offer acceptance with no additional cost to the seller. 

Why is this happening? 

The housing market here in Bexar County continues to flourish, but as we enter fall and winter, it becomes more of a seller's market. The home buying process is taking longer than the home selling process. There is still a high demand for homes as people move to Texas from other states and older millennials have enough buying power to purchase homes for the very first time. Sometimes the sellers are able to sell their home very quickly but need extra time to find their next home past the closing date. In this case, they can opt to have a lease back clause in their contract with the new owner, giving them time to close on their new home while still having a place to live. 

How to make this process easier?

It is a good idea to find a real estate agent that you trust that has done this process before for other sellers and buyers. Experienced real estate agents can appropriately time the selling, closing, and buying process of your present and future new home. Another way to mitigate the stress is to make sure your finances are already in order, pre approval, downpayment, etc. before you put your home on the market. If you are using the sale of your home for a down payment, make sure the loan broker understands this and will factor it into your pre approval for you. 

The market has been through many changes in the past few years and this is just another way people have adapted to it. If you need assistance in the buying or selling of your home and need someone with has navigated the lease-back process, visit www.threepiecerealestate.com and schedule an appointment with Robert Ott. 

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Thanks for reading!

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