Seller Locked in with me but need time to move out...what should I do?

Question

Here's the scenario, the seller is an elderly lady that is moving out of state.  She has agreed to sell to me, but is still working out her living arrangements out of state.  Should I go ahead and contract the property, or wait until she has everything situated?

Tim G. · Answer

You have endless choices. You can set the contract up so it is longer on the inspection period until she it out. Not my favorite choice.

Or you could draw up an agreement to vacate with her, get it signed and set a move out date. Then sell it with her in place, to help secure her move out the funds from the sale should sit in escrow until she has vacated the property. So she has financial motivation to get out.

So, lock it up and sell that bad boy!

Tim G. · Answer

ALWAYS lock it up.

There is a mental commitment to signing something.

Wayne Brooks · Answer

Get it under contract now.  If you need to extend the closing/move date later, you can do it.

Ricky Ostrom · Answer

You could lease it back to her short term.   Many buyers would like a tenant in place.

See the TREC Contract "SELLER'S TEMPORARY RESIDENTIAL LEASE".

http://www.trec.state.tx.us/pdf/contracts/15-5.pdf

Matt Devincenzo · Answer

Absolutely lock it down you can always set sale dates later, or as Tim G. described sell it and hold funds in escrow for a future move out.

It will be up to your buyer whether or not the extended holding period is worth it, but if the numbers work they won't care. And if the extended hold isn't worth it at least you have a contract so that the seller doesn't get cold feet later when you can get it sold.

Adam Demchik · Answer

I am in a similar situation with an elderly person who wants to move in 4-5 months.  she is motivated to sell but should I lock it down now or wait it out without a contract?

Matt Devincenzo · Answer

What kind of timeline is she looking for?

If she is planning on moving in the next 60 days or so I'd contract and just put closing out that far. I personally would have no problem; I would have a guaranteed property in the pipeline for a later date that I don't have to put money out for right now. I have a SS I've been waiting on for over 45 days now and even if it's approved today won't close for a few more. And I have to maintain my POF in my acct until I close so I can't spend it on anything no matter how I plan on closing so for a conventional sale that I know I'm only waiting until she moves no problem.

Seller Locked in with me but need time to move out...what should I do?

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