The seller came back with a counter proposal. I had earlier mentioned I may take the market price rent before I thought it through. The seller wants to pay 40% of the market price rent since they will use the house only 40% of the time, mainly all 3-day weekends. That makes no sense to me. They also offered to revisit in the fall. That works for me. We will be talking tomorrow. They may find another buyer by then or I may find another house. So it goes.
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Do they only pay 40% of the cost of hotel rooms if they are only sleeping for part of the day, or only using one bed? Would you be allowed to use it the other 60% of the house?
Thatâs just nuts. If you donât want to sell your house, donât sell your house.
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Or sell your house⊠empty it of all contents (except any furniture/applances that are part of the deal). Then rent it back from the new owners at vacation rental rates.
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Thats ridiculous. They may only use it 40% of the time but they have the access 100% of the time. Thatâs a hard no.
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It sounds like they donât want to sell this house to put such a ridiculous offer to you.
They may need the money, they donât need it bad enough.
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Talking to the seller has been like talking to kids. I am countering it with vacate by September 1st and two months rent at market price. Itâs been dragging so long, I am guessing it wonât be before June 30 when we close if it comes to that. They get the high season. Will see what they come back with.
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You wrote this earlier: " I think I should push for closing and vacating the property now if I am paying now. I was trying to accommodate their wishes to use the property another season but itâs just too risky for my taste."
I agree with this 110%. There are enough red flags here that I wouldnât agree to a rent back with these people. If they want to keep the house until September 1, then the closing (and exchange of money) happens Sept. 1st. If they need the money now, then they need to move out⊠now. Their cash flow issue isnât your problem unless this property is so amazing and so under market value that you canât bare to pass it up (which it doesnât sound like from your earlier posts: âIt is not a sellerâs market. The property is a bit unique, at a full price or slightly overpriced.â ).
A neighbor of mine, in a hot sellerâs market, just did a rent back agreement with new buyers but they sold the house nearly $200K under market value to have the privilege of staying, and they are only staying two months.
IMO, there is enough risk to you as the buyer that the incentive for you to allow the rent back needs to be amazing. I donât see that here for you.
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This is totally ridiculous. If they are so unreasonable now, imagine the further hassles you may have during their tenancy and move out. Are they only going to pay 40% of the utilities, are they expecting you to make all repairs, what about property taxes that will hit you, who is insuring, the list goes on.
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Sounds like itâs time to just say no and ask for a closing date soon.
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Of course, you guys are right. I wonât counter.
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Either you close now, and they vacate for good, or you will revisit your offer in September, after they have their summer fun.
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Thereâs no great need for them to stay in this house. They arenât building another, they arenât going to be in between homes for a short time.
They want something, and they want to find a buying who will indulge their fantasy of remaining in their vacation home at a below market rate.
Maybe they think they will find that elusive selling situation. It sounds like youâre done.
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67 posts were merged into an existing topic: Patterns in your family, who picks up the check?
Why didnât they stipulate this earlier in the process or even upfront (if that wouldnât have killed potential sales)? Or why didnât they wait until later in the season to put it on the market? It still smells a little fishy
Story continues. The seller came back with, sign the contract now and close after Labor Day. It is a beach town. The season is practically over by Labor Day.
Sounds like a great deal for the seller. They get to know the house is sold and also get to spend the summer there. If that doesnât work for you I would pass.
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I donât think I would be against this proposal because until the house is closed Iglooo is not responsible for the house. The seller would be responsible for all expenses and liable for the house. The only thing I would change would be that the buyer should get the interest earned on the down payment (usually the buyer would get the interest earned in the escrow).
If Iglooo is concerned about not getting the summer rental fees, the price could be lowered to reflect that.
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I could also ask for a price reduction, say 2-3% in exchange. That would make it a decent price. Thatâ would be half of the seasonâ rent.
@oldsfort, I like that. If something goes terribly wrong, I can walk away.
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And your walk- through is AFTER the intensive use summer. So problems will be much more obvious at that pointâŠ
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A 60-90 day close isnât that uncommon in my area so I think thatâs totally fine.
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