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That's a very seller-centric post. The reality for a buyer that had been renting is that they have to be out by a certain date and likely will try to arrange the closing date to the end of their lease or end of a month. Should the new owners of the home have to put their stuff in storage and pay to live in a motel while the seller-- who no longer owns the property-- gets their ducks lined up or deals with some wrinkle that appears?
So what if it's a "seller centric" post. The sellers own the home until it closes. I mean, they already own it - that is a FACT. The buyers don't own it until they get their stuff together and sign on the dotted line - and it ain't over till the fat lady sings when it comes to closings.
But get this - stuff happens with sellers at the last minute too. Things like accidents, illnesses, etc. ANYTHING can delay a closing and complicate things. But the bottom line is that in the vast majority of cases, things work out and no one is seriously harmed in the total scheme of things.
It's best to work TOGETHER and cooperate TOGETHER on this. You know, a buyer can have everything they own in a U Haul at the end of the month and stay in a hotel a night or two - and be COMPENSATED FOR THIS by the seller, if necessary.
But thanks for bringing up a good point - it's best to avoid closing at the end of the month if at all possible. I encourage buyers and sellers to close ANY week other than the last week of the month - this usually gives buyers more time to move out since their rent is paid up till the end of the month (if they are renters). Also, lenders, title companies, etc are at their very busiest at the end of the month. Like I said, every situation is different. But why not try to avoid the end of month rush whenever possible, and that way, avoid unnecessary pressure on everyone?
Thanks for the very interesting perspectives from everyone. Kathryn, you seem to get what the situation is. I have had very bizarre situations in my previous sales/purchases. One where the buyer just decided not to go through with the sale and just skipped closing and never explained. Meanwhile we had rented a new house and moved out and then had to move back! In the process we lost the new construction home we were under contract to buy and waiting on to be finished.
In another, we were the buyer and the closing had to wait for the county to do a property line adjustment before we could close and there was no definite date (although the seller put a 90 day limit on it) that they would do that. It ended up taking over 120 days. Meanwhile we had sold our existing home and had to move out there so the buyers could move in. Disaster!
We're reluctant to pack our stuff and ship it all cross country before escrow closes. If things fall through, we're sitting with a vacant house with our 85 year old mom, our stuff in another state in storage, and having to stay and maintain the property for an unknown length of time until it sells again.
Anyway, thanks again for all the opinions. Somehow we'll work all this out.
So what if it's a "seller centric" post. The sellers own the home until it closes. I mean, they already own it - that is a FACT. The buyers don't own it until they get their stuff together and sign on the dotted line - and it ain't over till the fat lady sings when it comes to closings.
We are talking about a seller occupying the home after the fat lady has exited stage left and moved on to another venue. So the seller owns nothing at this point but is still in the home. There is a domino effect that can come into play here. The buyer gives the seller 2 days to move after closing. The buyer arranges a moving company, takes a week off from work, arranges painters, a locksmith or other outside services to come in and then the seller's moving company doesn't show up, or their job falls through or their new home has an issue and they cannot move on time. What then? Monetary compensation doesn't make up for the havoc that an arrangement like this can cause.
I get what you are saying about cooperation but at the end of the day it's a matter of the buyer's tolerance for risk that something might happen. The buyer may have their own story of a past horror in which they showed up to their new place (rented or owned) in a moving van and found the tenants still there because of some issue and they were in quite a bind.
I think the OP got a wide assortment of answers here that can be good food for thought even if those answers were something they didn't want to hear.
We are talking about a seller occupying the home after the fat lady has exited stage left and moved on to another venue. So the seller owns nothing at this point but is still in the home. There is a domino effect that can come into play here. The buyer gives the seller 2 days to move after closing. The buyer arranges a moving company, takes a week off from work, arranges painters, a locksmith or other outside services to come in and then the seller's moving company doesn't show up, or their job falls through or their new home has an issue and they cannot move on time. What then? Monetary compensation doesn't make up for the havoc that an arrangement like this can cause.
I get what you are saying about cooperation but at the end of the day it's a matter of the buyer's tolerance for risk that something might happen. The buyer may have their own story of a past horror in which they showed up to their new place (rented or owned) in a moving van and found the tenants still there because of some issue and they were in quite a bind.
I think the OP got a wide assortment of answers here that can be good food for thought even if those answers were something they didn't want to hear.
I sold real estate for many years, so of course I understand who owns the house when. My point is that each case is different, and that various buyers and sellers have various tolerance levels for seller occupation after the sale closes.
By the way, this period is determined BEFORE closing, and often as a condition of the sale. For instance, a buyer may make an OFFER and the seller may say "I accept that offer ON THE CONDITION that I have three days/three weeks/whatever to move out/transition/whatever AFTER the closing." So - in order to make the deal work, the buyer may decide this inconvenience is a small price to pay in order to get the house they want.
So it's a CONDITION OF THE SALE and legally binding - it's part of the whole package deal.
I have never sold my own personal property without a contract that gave me several days AFTER closing to move out - and it's simply never been an issue. And I've bought and sold probably 6 homes I owned - with more to come if I have my way.
I'm not saying one way is superior to another. I'm just saying that it's not an unrealistic or uncommon agreement or request.
I have never sold my own personal property without a contract that gave me several days AFTER closing to move out - and it's simply never been an issue. And I've bought and sold probably 6 homes I owned - with more to come if I have my way.
I'm not saying one way is superior to another. I'm just saying that it's not an unrealistic or uncommon agreement or request.
Funny there is another thread going on right now....
I've had clients sign leases and be half way across the country when we've heard for some reason the buyer cannot or will not close on the house at the very last minute. Nothing like having a 12 month lease in one state and a vacant unsold home in another state.
Many sellers want the money in the bank before they make major financial commitments. I advise anyone doing a lease to do it contingent on the closing of their home.
A few days to lease back is very common. Our state even provides a very short lease form for these situations.
I've had clients sign leases and be half way across the country when we've heard for some reason the buyer cannot or will not close on the house at the very last minute. Nothing like having a 12 month lease in one state and a vacant unsold home in another state.
Many sellers want the money in the bank before they make major financial commitments. I advise anyone doing a lease to do it contingent on the closing of their home.
A few days to lease back is very common. Our state even provides a very short lease form for these situations.
I see you are in Texas - so am I! You're right - leasebacks are very common in our state, and simply not complicated.
Lots of brouhaha over what is generally not a big deal - around here anyway.
You are kidding?? Would you agree to that in your newly bought home? I think you should rent storage, or anything else that will get your home vacant on closing. You don't want to be paying for two houses, but you want the buyer to pay for two??
I sold real estate for many years, so of course I understand who owns the house when. My point is that each case is different, and that various buyers and sellers have various tolerance levels for seller occupation after the sale closes.
By the way, this period is determined BEFORE closing, and often as a condition of the sale. For instance, a buyer may make an OFFER and the seller may say "I accept that offer ON THE CONDITION that I have three days/three weeks/whatever to move out/transition/whatever AFTER the closing." So - in order to make the deal work, the buyer may decide this inconvenience is a small price to pay in order to get the house they want.
So it's a CONDITION OF THE SALE and legally binding - it's part of the whole package deal.
I have never sold my own personal property without a contract that gave me several days AFTER closing to move out - and it's simply never been an issue. And I've bought and sold probably 6 homes I owned - with more to come if I have my way.
I'm not saying one way is superior to another. I'm just saying that it's not an unrealistic or uncommon agreement or request.
The point was the thread was asking if this is common. Clearly this wasn't already part of their contract, or they wouldn't need to ask.
And, judging from the responses it is not common.
I have been buyer and seller multiple times. I've neither bought or sold an occupied home. That's like buying a car and letting the previous owner keep driving it. Too many variables. If you are at the point of sale, signing the closing papers your move should have already occurred....If there is inconvenience it shouldn't be on the one spending the money buying your home. imo
You're not necessarily moving if there's not a closing. For instance, if your down payment on your next home is the equity in your current home, you can't close on your NEW home till your old home closes and funds.
I have literally known of situations in which the BUYER was killed in a freaking car accident on the way to the closing. I had a situation once where a buyer had to sell a home in Florida in order to close on my seller's home - and a hurricane was bearing down on the buyer's house and the title company wouldn't close till they knew whether or not there was going to be a house to sell!
I've had situations where the buyers were buying a home they wouldn't be moving into for several months, and they were more than willing to allow the sellers to rent back their former house, so that the house wouldn't sit there empty for months.
Every situation is different. The reality is that many sellers AREN'T moving anytime soon, if this particular closing falls through. Should they have to pay the moving company to pack and then unpack their stuff and bring it back in? For maybe several more months?
You're either moving or you're not. Christmas 2009, months before I put my house on the market, I packed up all my breakable Christmas stuff extra special-careful-like. A month before putting the house on the market, I started packing up non-essentials like fine china and glassware. Whether or not my eventual deal fell through - I WAS MOVING.
I remember when my bff bought her first house - she said "these people don't really seem like they want to move - the house is a complete disaster and I don't even know when they plan to start packing. I don't know what they are waiting for". Again - you are either moving - EVENTUALLY - or you're not.
And yes, I personally know someone who died about a week before their closing - 29 years old, brain aneurysm. Guess what? Their sellers still sold their house, it was a couple months later. I'm not saying the OP should pack up everything they own, but it does not take 2 weeks after closing to pack up a house if you've gotten most of the big stuff done before then....makes no sense to count on the one-in-a-million scenario.
I personally do not know anyone who has paid the moving company to pack their stuff, so I can't speak to that end of things.
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