At CoreMark, we strive to deliver the highest quality of service with every sale. Our goal is to help people get to their next chapter in one simple and seamless transaction. One of the ways we simplify selling is called a seller leaseback.
Timing a Sale and Purchase
In a perfect world, you sell your home and movers arrive to transport your belongings to your new abode a few days before closing. When you've completely moved out, you hand over the keys, collect the proceeds from the sale, and head to your brand new place to unpack your things.
In the real world, we all know timing your home's sale and lining up the next purchase can be a little tricky.
Many of the people we work with haven’t located their next purchase. Even when you do find that perfect space, getting your offer accepted in a competitive market where homes can receive 30 offers as soon as they hit the market, is a whole other story.
Let’s imagine you’re ahead of the curve. You’ve located the perfect home and you have an accepted offer; now you’re on the hook for a down payment. We can all imagine a situation where it may be difficult to produce a down payment before you’ve received the proceeds from the sale of your home.
Our solution? A seller leaseback.
Seller Leaseback
Also referred to as a sale-leaseback or holdover, our leaseback agreement allows you to receive payment for your property and lease back the property from us for up to 60 days while you locate and purchase your new home.
While selling property and renting it back from us may not sound commonplace, just over 20% of sellers have taken advantage of a leaseback. With today's inventory shortage in the real estate market, we anticipate the percentage of sellers taking advantage of our leaseback program may grow even higher.
Leaseback agreement.
While terms are negotiable, all our leaseback agreements are served in writing as an addendum to the Purchase and Sale Agreement. Our leaseback program is designed with you in mind; we tailor each agreement to be flexible and extend the best terms possible to support your transition. In some cases, you may need a couple of extra days after closing to relocate your family. Others, take advantage of the full 60 day period our leasebacks offer.
Factors to consider:
Time frame
How long will you remain in the property after the sale? If you've identified a new home and set a closing date, you have an idea of how much time you'll need. In many cases, where you haven't found the right home yet, your move-out date isn't as cut-and-dry. Our leaseback agreement offers a full 60 days in which to orchestrate your move.
Rent
How much rent will you pay?
We use a daily proration of principal, interest, taxes, and insurance at current mortgage market rates to determine rent. Many sellers are pleased to recognize the PITI payment calculation often comes in below-market rent for the area.
Insurance
Most homeowners insurance policies stop coverage on the date of closing. We include the cost of insurance in the price of rent. It’s a good idea to purchase rental insurance to cover your belongings as a tenant in the event of loss or damage.
Security deposit
As with most rental agreements, a security deposit acts as collateral for damages to the home during the leaseback period. We conduct a final walkthrough at the end of the seller occupancy before releasing the security deposit back to the seller.
Maintenance and repairs
The seller is responsible for maintaining landscaping during the leaseback period. The seller is responsible for maintenance during the leaseback period and agrees to return the property in the same condition as the date of closing.
Timing a properties sale and lining up your next purchase can be a daunting undertaking. Our leaseback program has been custom-tailored to deliver flexible and attractive terms to a growing number of sellers. Be sure to speak to your transaction coordinator if you are interested in taking advantage of a leaseback agreement.
