Seller’s Temporary Residential Lease

Seller's Temporary Residential Lease

Does the thought of packing up all of your precious belongings, scheduling movers, utility shutoffs, and wrangling the kids, pets, and spouse into a packed car send shivers down your spine? Is it made worse by the thought that you could go through all of that only to have the contract on your house go wrong at the last minute? To avoid making those last few days leading up to closing even more tense and stressful, consider this.

Sellers can request and negotiate to lease their home back from the new buyers after closing. There’s a simple two page form called the “Seller’s Temporary Residential Lease” that gets added to the contract and I must admit there have been times that it has been a true lifesaver. With this form, you negotiate a set per diem rental rate (commonly it’s calculated by taking the buyer’s new monthly payment and dividing by thirty, but it’s all negotiable) and possibly offer up a security deposit. Once everyone signs at closing and the deal funds, the buyers become the rightful owners of the property. And the old owners become their tenants. Standard landlord/tenant relationship rules apply and generally payment for the anticipated term of the lease is paid all at once up front. This leaseback can extend for a few days or a few weeks, just no longer than 90 days. So if the new home you’re purchasing isn’t quite ready or if you just want an extra few days of certainty before busting out the boxes, consider this as one more option in your real estate tool belt.

There is also a “Buyers Temporary Residential Lease” which is used when the buyer needs to move in before closing. It is not as common as there are some legal issues with doing this, but it can be used in a pinch.

10 Things Sellers Shouldn’t Do

Number 10

Never, ever do these ten items.

Selling your home seems simple enough, but there are hidden dangers out there. Simple mistakes that could easily cost you a sale. Some are so simple that you’ll want to have a “I could have had a V8″ moment. Some are emotional gut checks. And some are just good practices to remember when going through the offer phase of negotiations. Stick with these ten things to not do when selling your home and the process will flow much more smoothly to the final days of closing.

  1. Stick around for the showings: It makes people uncomfortable. Buyers suddenly clam up if they feel they’re being watched by a stranger. They are less likely to really take time to go through and appreciate all that your house has to offer, and they may walk away with unresolved feelings about the home because they didn’t feel they could speak openly with their partner or agent with you around.
  2. Neglect the yard: First impressions are critical, and a good deal of that revolves around landscaping. Especially during times of drought, it is worth it to make sure those sprinklers are set correctly or to take the extra time to hand water. Buyers do notice if you have the greenest grass on the block. And they like it. Unruly bushes and trees suggest something unfinished or unattended to and makes them wonder about everything else.
  3. Take offers personally: Many buyers have been told that they can get a good deal on a home and a lowball offer may just be their way of testing the waters. They don’t know you personally. They aren’t trying to insult your property. They may just be trying to seem savvy in what they consider to be strictly a business transaction. Look at things from that perspective.
  4. Take repair requests personally: See above about the offers. And then also consider that some buyers may not have a handy bone in their body, so the thought of “arc fault protectors” may scare them half to death.
  5. Price yourself out of the market: We know your home is beautiful and you’ve put a lot of money and effort into it. But the truth is that the market is what it is and most of the time there’s nothing you can do about it. If your neighbors sold low because of a divorce or emergency job relocation, you may pay the price for that in your own sale. It’s not that anyone is against you making money, but more that there are some conditions you can’t control. If you’re priced too high, you could miss out on some valuable first days on market when the property is likely to gather the most attention. You may flat turn off some potential buyers and you may even have your house listed longer as it could stagnate. Really analyze the sales data and trust in the experts. It will pay off in the long run.
  6. Settle for good enough: Buyers are snatching up properties these days and the homes that are going quickly (often with multiple offers or above list sales prices) are those that have been well maintained and show impeccably. Take the extra time to plug in some air fresheners, to clean the windows, and dust the tops of those cabinets you don’t think anyone really sees most of the time. It’s the little details that can add up to make a big difference. Let your property shine and take the advice of your agents as to how to get your home to that next level of awesome.
  7. Pack up and move right away: Start making a plan, but unless you have to move, you’re better off waiting until a buyer makes it through the option period – and even the financing period – before getting those boxes out. Unpacking is never fun and neither is carrying the expense of multiple households should anything go wrong on the deal. Consider a leaseback as an option in the contract that could save you a lot of frustration in those final days before closing.
  8. Conceal facts: State law requires a seller’s disclosure and “forgetting” is not really an admissible excuse in court. Be as honest and forthcoming as possible about property conditions and save yourself a lot of headaches (and liability) down the road. Dig up those old receipts to show where a problem was resolved and keep good maintenance records to help with those memory glitches. If you’d want to know as a buyer, you should probably tell it as a seller.
  9. Turn down showings: If no one can see your house, no one will buy your house. Having your house listed for sale is a chore, but you have to participate to get your desired result. There are many times when it is really and truly not possible to show your house – family member’s illness, tornado in the living room, out of town company cramming their suitcases in every corner – and we get that, but try to be as accommodating as possible and you’ll likely get an offer as quickly as possible.
  10. Go it alone: Real estate purchase contracts are legally binding documents full of small caveats and provisions that you may not even consider when thinking of buying a home. Even when buying a new home, it’s completely worth it to use the expertise of a quality REALTOR® to provide a wealth of information and negotiating skill. From comps to property condition pitfalls to resale considerations and negotiating skills, agents deal with these matters day in and day out. Go with a pro.

image courtesy of yoppy

San Antonio Real Estate Enters Springtime

Spring Flowers

Housing Market in Bloom?

After our short bout of wintery weather, I’m feeling rather eager to see the spring (and even more so the summer). Part of what makes San Antonio so great is the fantastic weather. As the temperatures thaw and our days get warmer, we’re definitely seeing a pick up in real estate activity. More people searching for homes, more questions being asked, more phone calls being made, and an overall increase in traffic to this website. As the swallows return to San Antonio (I spotted two this morning), I thought I’d cover a few preparations that you should all be thinking about over the next few weeks as you prepare to sell your San Antonio home.

Selling your home in San Antonio

Spring cleaning – No one loves the thought of spring cleaning, but we all know that a house that sparkles will sell faster. Think of it this way, as March and April move along, many new homes will enter the real estate market. If you had two homes to pick from that were similar in shape, size, and amenities; which would you choose – the one that looked like the homeowner’s had kept it shiny and clean through the winter months or the one that didn’t? Now multiply that by the number of homes that are going to be on the market soon and you’ll see the big picture. Your home has to be better than all the rest. Get out the mop and broom, change the filters in your heater, pick up the trash that has blown into the flower beds (it’s been windy this winter), shine up the windows, and clear out the clutter. Let’s get that house sold!

Price right, price strong – You’re going to have a lot of competition in the coming months, so you’re going to want to be priced right from the start. Long gone are the days when you could test the market with a high price and hope someone would bite. Buyers are quick to dismiss a property these days if the price doesn’t suit their needs. In fact, pricing has become more important than ever because buyers are willing to wait out a seller. And once the price reductions begin, the buyers think they’re on to something and tend to wait even more, hoping the seller has only started their desperate reductions. It’s a dangerous game to play. Take a look a comparative market analysis, look at the current market conditions, and devise a marketing plan with your REALTOR®.

Offer more than expected – Sometimes, it’s the little things that make your home stand out from the others. Offering a home warranty or appliances (washers and dryers, media room equipment, refrigerators, etc.) as part of the listing can entice the buyer to choose your home over a similar home in the neighborhood. It’s also less you have to pack on moving day. Don’t think you’ll get a dollar for dollar value for these items though. Today’s buyer is being enticed to new home communities with large incentives and upgrade packages. Some of your biggest competition is going to be local builders who have the deep pockets to slash prices and give buyers more than than they expect. Although most home sellers can’t afford the kind of incentives a builder can, offering more than expected can be the deciding factor for a home buyer.

Get your home on the market!

It’s time to get that home on the market. So spruce up your home, contact us, and let’s get that home listed! We’ll work to price the home right, get the marketing machine in gear, and get the buyers into your home. From the minute the for sale sign goes in your yard to the day you sign off on the contract and hand over your keys, we’ll be there with you every step of the way.

image courtesy of janoma.cl

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San Antonio real estate and property information provided by Kimberly Howell Properties. Kimberly Howell Properties does not assume any liability or responsibility for the operation or content of any of the linked resources, nor for any of the interpretations, comments, graphics, or opinions contained therein. All information deemed reliable, but not guaranteed. KJH Properties, Inc. is a licensed real estate brokerage in the State of Texas, Equal Opportunity Employer, and supporter of the Fair Housing Act.