If you’re like many people, selling your home is a huge deal – but what are you supposed to do if you cell and don’t have a new place to live? This guide explains.
What if You Sell Your Home But Don’t Have a New Place to Live?
Other than couch-surfing until you find a new home, there are a few options you may need to explore if you sell your home before finding a new one:
- Renting an apartment
- Asking for a rent-back agreement
Here’s a closer look at each.
Renting an Apartment
Renting an apartment temporarily seems like an extreme measure, but it may be your only choice if you’ve sold your home and don’t have a new place to live yet. Though there are not a significant number of short term apartment rentals in Scottsdale, there are some – and that means your options are open. You may also consider renting an Airbnb or a home through another type of platform, but just bear in mind that these options can get expensive if your home search lasts more than a few weeks.
Asking for a Rent-Back Agreement
Rent-back agreements are gaining popularity because the housing market has been so unpredictable. Sometimes called the leaseback agreement, these are arrangements that buyers and sellers make together, before the sale of a home, so that the seller may remain in place until the buyer is ready to move in.
This only works if your buyer is willing to let you become a temporary tenant. Sometimes, people need to move in right away; if that’s the case in your situation, a rent back agreement may not work out.
Make no mistake: You will be your buyer’s tenant. You’re most likely have to pay a security deposit, and will be responsible for any damage that occurs to the home while you’re staying there. You may pay a daily, weekly or monthly rate to lease the home back from its new owner – but in incredibly fast-paced markets, those rates may be very low (or nonexistent; some buyers are willing to let sellers stay in the home for free for a certain period of time).
Is it Better to Time it Right in the First Place?
Naturally, if you can find a buyer who’s willing to wait to move in until you’re ready to close on the transaction, it’ll be easier for you. However, rent-back agreements happen in around 25 percent of all real estate transactions, so they’re not uncommon.