Selling your home to a cash buyer is amazingly fast. From the moment you contact the buyer to the day you sign the final papers, it could be only a week. If you need the cash but you’re not quite ready to move out, you may consider renting your home back from the cash buyer.
What Is a Cash Buying Company?
A cash buying company is basically a property investor. They buy homes from individual homeowners who want a quick and easy sale, for a variety of reasons. The homeowners may be facing foreclosure, going through a divorce, or selling a house in probate.
The cash buyer purchases the house directly from the homeowner in “as is” condition. That is, the homeowner is not expected to do any repairs. The buyer then fixes up the house and resells it or sells it wholesale to another company that will do the work.
What Is a Rent-Back?
Many homeowners need the cash immediately so they set the closing date as quickly as possible, which could be within a week. But at the same time, they may need more time to pack up their belongings and find other living quarters.
They may then arrange to rent the home back from the cash buyer so they can stay a little longer. They will no longer own the property, but they can remain living there and pay rent to the buyer.
How Long Can You Stay?
The sellers will negotiate with the buyers how long the rental will last. Each individual situation is different. If the cash buying company needs to resell the property or renovate it immediately, they may not agree to a rent-back. On the other hand, the buyer may agree to a longer-term lease.
The terms of the rental agreement, such as who pays utilities and who is responsible for any damage to the property, will also be negotiated. The buyers will want to protect their investment for as long as the tenants stay.
While selling a house to a cash buyer is straightforward, moving to another place can often carry with it some uncertainties. If you need more time to move after the closing date, try asking the cash buyer about renting your house back.
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