The Following Article is from the Fall 2006 Newsletter
Q. I would like to list and sell my house this month while the market is active, but we won’t be ready to move out until early spring. What is the best way to accomplish this?
It is quite common for a seller to stay in their house after they have sold it and closed escrow. We usually structure this as a leaseback arrangement where, upon the close of escrow, the sellers become tenants to the new owners. A long or extended escrow has risks to the buyer that interest rates or even the economic climate may change.
The lease amount that the sellers (now tenants) pay is negotiable, however a good benchmark for rent is the buyers carrying costs we call PITI (principle, interest, tax and insurance). In a condo there would also be the homeowner association fees to consider.
With any real estate transaction there are inherent and potential problems, but when handled properly these issues can be anticipated and mitigated. We have had extremely good success with lease back arrangements