Real estate help .. I don't see this question in the forum (short sales, lease)

Eyes · 06-12-2010, 03:46 PM

OK .. the saga continues in the search for our NV home ..

We made a offer pending visitation as the tenant would not allow viewing.
Some how we were "chosen" one month later ..
After being told it was going to someone else.

SO.... Now we get a counter to our original .. seller wants to place a month to month into the property.

I am in shock and don't even know what questions I should be asking ..

Any sage advise ? ... Thank you ..

WestieJeff · 06-12-2010, 04:50 PM

You put an offer in on a house without even seeing the inside?

Are you saying the seller wants to rent back from you month to month after your purchase?

Is it a short or a conventional sale?

Eyes · 06-13-2010, 11:19 AM

Yes .. offer is contingent on inspection

No .. the rent would be ours .. so far the details are slim
Seller is in RE and wants to put in a m 2 m @ market $$ for a term lease.. while they house hunt ..
Wants a clause giving them xx days after approval of sale

Yes a short sale.

WestieJeff · 06-13-2010, 01:54 PM

I don't see it is any different than any other time the seller wants to rent back after closing. You have to look at your situation and decide if delaying occupancy of the house is a problem for you, if it is then you may not want to accept this or perhaps you can ask for some dollar amount over market to compensate you for the inconvenience.

Either way I would put a maximum term on the amount of time they can rent back. Three months, six months, something like that, just so the expectation is set up front. If they go try to buy a short sale themselves then that could take many many months.

Plus, how are they going to afford and qualify for a new place if they are shorting their existing residence?

007 license to sell · 06-13-2010, 04:50 PM

This sounds fishy, if the seller is short selling their home they won't be able to purchase another home. I would have an attorney look at your contract and counter offer this doesn't sound right.

olecapt · 06-13-2010, 04:59 PM

Just pay attention. Such deals can work out fine. If the timing is not good...say no. When dealing with shorts you have to be flexible. This is pretty much a little more of the same.

It is a good place to have a smart agent or get a RE lawyer into the act if you are not secure.

Eyes · 06-14-2010, 08:03 AM

Thanks to all who have responded and are giving great questions and answers.
It is very helpful to work through this with people with out skin in the game.
You can be more objective.

Quote:

Originally Posted by WestieJeff

I don't see it is any different than any other time the seller wants to rent back after closing. You have to look at your situation and decide if delaying occupancy of the house is a problem for you, if it is then you may not want to accept this or perhaps you can ask for some dollar amount over market to compensate you for the inconvenience.

Either way I would put a maximum term on the amount of time they can rent back. Three months, six months, something like that, just so the expectation is set up front. If they go try to buy a short sale themselves then that could take many many months.

Plus, how are they going to afford and qualify for a new place if they are shorting their existing residence?

I know there are been many pitfalls with short sales.
I have encountered many of them as I have been putting out offers since September.
The market seems to cater to investors
This may create a larger percent rented properties in communities that were once stable.

This is a whole new issue to me.

Already thought about a maximum time limit and asking for more rent $$ after we close
The seller is in RE and is NOT the tenant ..
The tenant would be the sellers out of state client.
It is also not yet in stone and I find that as part of the problem.

Also my spouse feels every room needs some work and the kitchen a tear out.
Our first offer meets the #'s in the comps but as I had seen some of these
I don't feel this is quite the same value as kitchen & bath were better.
The electrical fixtures and floors were better shape / quality .

I have not yet responded to anything .. I said I would by the end of today.
Our first offer was technically countered .. after a month .. that was last week.
I am also feeling .. and hope I am wrong .. my rep is pushing this property for a friend to the seller.
We have been working together 10 months.