Question in the title. Fully upgraded. All good schools from elementary thru high. Home built around 1990s. Nice, safe neighborhood. Location : South Bay. Seller is willing to pay rent (4000$), but not the rent you will actually get if you rent out to someone else. (6000$+). Please explain why and why not ? Since only Bay Area folks know the market , looking for inputs only from them. I know it is an unimaginable situation for non Bay Area folks 😀 Edit : For comp , a 3500sq ft home that looked more grand than this one was sold for 2.55M in December first week. It had slightly better elementary than this one, middle and high are same. It also had 1 more bed and bath. Had 2 months rent back. #housing
No. You don’t really need explaining why not.
Rent paid is equal to mortgage plus down payment interest, sure why not and have a lease with clear end dates.
Updated original post
Usually rent back means the person wants to continue to live there and will pay rent. I world say no, as they are trying to capitalize on the housing prices which would likely drop by August if the fed raises rates.
True but with the current trend house prices are predicted to go up even more. If you have observed the market last year , houses that were sold for 1.9M 7-8 months back are now sold for 2.6M.
The fed wants house prices to go down by increasing rates. It’s a clearly outlined goal as far as I understand. Do you expect them to fail in this endeavour?
Nah
Absolutely not. That's a year where you're subsidizing 10k a month for them (rough math) while also having to cover your current living expenses (such as current rent). There are other good homes in the 2.7M range where you could move in right away and be happy, and no one knows where the market will be in August given how unusual this year may be based on fed rates and last year appreciation. Personally I'd invest and accumulate in the 8 month period, worst case.
Yup , I concur. But we have been watching this area for 8 months now , with every house being sold the sellers are expecting (and getting ) 200K more than the previous house that was sold , even if it’s just a month back. In short for the same price 3 months back we could have got a bigger house and lot compared to the ones that are sold now.
Are you getting any discount compared to comparable sales. I would do it if I am saving atleast 50-100k below possible sale price. Also this might eliminate any bidding wars and chances of losing the house. So if you really like the house and it is your dream home then go for it.
Listed at 2.55M seller is actually expecting 2.75M 😀not a dream home but a decent home
+1 on the opportunity to leverage this for a discount on the sale price. The rent back is not a biggee, but you stand to get this home at a better (great?) deal. At $2.7m, the psf is $900, which is not bad depending on the neighborhood/city. At $2.5m, this is potentially a huge savings (including lower property tax). Conceding a 8mth rent back is nothing in the grand scheme of things. Good luck on this deal!
Depends how bad you want it
Not desperate for this particular house but have been heavily regretting missing another house in the same neighborhood that was bigger (3500 sq ft) with better elementary school than this and was sold for 2.5M in December first week 😞 missed that house thinking it was overpriced
You don’t have to, but will likely lose the house to someone who will
Yes I am very sure
As in they want you to pay them rent for 8 months? Is the tenant staying there or are you the “tenant”?
In rent back, the seller pays rent after closing
Updated original post with more info