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Drunk Tomato posted:Seller is requesting to move possession three days after closing so that they can have time to move into their new home. Should I charge rent for this, or is there anything else I need to do? Horror stories? You can find horror stories all over the internet on the bad things that can happen, some of it post closing damage but mostly people not leaving. It's really a question for your lawyer as to what risk you are potentially opening yourself up to and if you went forward, how to structure the agreement to best protect yourself after you've lost the leverage you held before the sale. Your state's law will be an important factor. My lawyer (in MA) strongly advised against it because of the difficultly in forcing someone out if they decide not to leave on time.
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Oct 21, 2016 21:00
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Drunk Tomato posted:Seller is requesting to move possession three days after closing so that they can have time to move into their new home. Should I charge rent for this, or is there anything else I need to do? Horror stories? Pushing closing back three days isn't an option? Right on the end of your rate lock or something? I wouldn't take the risk personally.
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Oct 21, 2016 21:12
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It's not that uncommon, we needed 2 weeks after selling our house to move because of REO fuckery. We paid rent equal to the new owners mortgage payment and had a new contract for a final walkthrough to make sure we didn't break anything.
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Oct 21, 2016 21:58
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My sellers did the same thing: closed on Tuesday but they wanted to stay in until Friday to actually move out. I just had my lawyer draw up an occupancy agreement where they paid rent equivalent to the daily rate and were responsible for the house until I took possession. Worked out fine
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Oct 21, 2016 22:30
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Drunk Tomato posted:Seller is requesting to move possession three days after closing so that they can have time to move into their new home. Should I charge rent for this, or is there anything else I need to do? Horror stories? Rentback is very common. Make sure you have a contract covering it. Everything in life is a risk. Call your homeowners insurance and ask them how that works. You probably need to get a binder from your sellers to show the 3 extra days of coverage, or include it in the rentback and buy it for them.
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Oct 21, 2016 22:30
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Is the three days of rent they pay you, taxable income? If it were me, I'd rather push closing back than go through the hassle of a rental agreement, insurance, any taxes, etc. for three days' occupancy.
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Oct 21, 2016 23:06
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Yeah because the IRS is going to come after you for that  they have no reason to know about.
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Oct 21, 2016 23:16
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I don't care about the three days of rent money - i just want them to leave when they say and I don't want them to damage the home. I'm fine pushing closing back, but i suspect that they need the money they get then to close on their new house?
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Oct 21, 2016 23:55
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Leperflesh posted:Is the three days of rent they pay you, taxable income? If it were me, I'd rather push closing back than go through the hassle of a rental agreement, insurance, any taxes, etc. for three days' occupancy. This is why you typically do a rentback for your daily mortgage cost. This means your basis is the same as your income - a wash. Also have a tax professional do your taxes the year you buy a house. Don't lose the cover sheet (or any of the other mountain of docs) until you close out the tax year after selling the house. Looking at our electricity usage the 2 days post insulation  it appears to be a 60% reduction. (I am a big baby and keep the AC set at 75 away/73 home.)
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Oct 22, 2016 00:10
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Drunk Tomato posted:I don't care about the three days of rent money - i just want them to leave when they say and I don't want them to damage the home. I'm fine pushing closing back, but i suspect that they need the money they get then to close on their new house? Then you could ask for no rent but take some cash in escrow refundable when they leave the house in good condition on time.
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Oct 22, 2016 00:42
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H110Hawk posted:This is why you typically do a rentback for your daily mortgage cost. This means your basis is the same as your income - a wash. Also have a tax professional do your taxes the year you buy a house. Don't lose the cover sheet (or any of the other mountain of docs) until you close out the tax year after selling the house. Dude we're like 86 / 81. Do you wear a sweater all day or something?
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Oct 22, 2016 04:00
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QuarkJets posted:Dude we're like 86 / 81. Do you wear a sweater all day or something? I don't know about where you live but my thermometer hit 95°F today. With the thermostat set at 76°F it will run at 100% duty cycle above ~90 degrees. At 100+ it loses ground to the heat, so the interior temp on the thermostat will start reading 77, 78, etc. 30-40KWh/day in juice. Last two days have been ~9.5 and ~11.5 respectively. The walls and ceiling would be hot to the touch. Now they are cool. And I am a big baby who sweats inside at 76 regardless of clothing status.
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Oct 22, 2016 04:18
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QuarkJets posted:Dude we're like 86 / 81. Do you wear a sweater all day or something? 81 would be absolute torture, but it probably has to do with the humidity outside. Maybe 81 is doable in Arizona but not in the northeast, at least for me.
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Oct 22, 2016 04:41
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QuarkJets posted:Dude we're like 86 / 81. Do you wear a sweater all day or something? That sounds unbearable. May as well skip the ac!
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Oct 23, 2016 19:19
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SiGmA_X posted:That sounds unbearable. May as well skip the ac! It's actually extremely comfortable and much nicer than the 90 degrees that it gets to outside. If it goes any lower than 80 then I need a blanket. It's relatively dry here, not Arizona dry but only like 30-50% humidity QuarkJets fucked around with this message at 20:16 on Oct 23, 2016 |
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Oct 23, 2016 20:12
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I'm closing on my first house on Thursday. They are still somewhere in the process of moving though, and the contract says they can stay for 60 days in the house, paying $45/day (covers the mortgage). The realtors made this seem pretty normal, and they're prepaying the full amount into the escrow ahead of time, getting a partial refund based on when they move out. Even the home insurance agent didn't bat an eye when I explained the situation. They're a nice family that took very good care of the house for over twenty years, and are happy to sell it to us because we're a young family with kids, so I'm not concerned they're going to abuse it. I don't mind if they stay awhile, they're paying my mortgage, and we're currently rent free with my parents. It's double the money for us, no rent plus they're paying our new mortgage, so it gives us an extra paycheck or two to help in furnishing the place.
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Oct 24, 2016 03:42
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Ravendas posted:I'm closing on my first house on Thursday. They are still somewhere in the process of moving though, and the contract says they can stay for 60 days in the house, paying $45/day (covers the mortgage). The realtors made this seem pretty normal, and they're prepaying the full amount into the escrow ahead of time, getting a partial refund based on when they move out. Even the home insurance agent didn't bat an eye when I explained the situation. Tell your insurance company and purchase 60 days of landlord coverage.
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Oct 24, 2016 13:24
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So, I just got the inspection report back and the house is not total poo poo like the last one we had a contract on. However, there are a few major things that I'd like to have deducted from our original offer. Things like the cost of having the chimney relined, termite treatment, and having a radon remediation system installed. When we make an amended offer, do we need to actually get quotes from contractors to back it up? Obviously I'll be talking to my realtor about this but I just got the inspection report back and am antsy since we may actually be moving forward on a home after looking for 3+ years.
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Oct 24, 2016 14:50
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LogisticEarth posted:So, I just got the inspection report back and the house is not total poo poo like the last one we had a contract on. However, there are a few major things that I'd like to have deducted from our original offer. Things like the cost of having the chimney relined, termite treatment, and having a radon remediation system installed. You can have quotes or not. Quotes will help in terms of bolstering the case and make it so that the sellers are more likely to believe you're trying to get those concessions corrected and not trying to pocket any extra as profit. It also means you won't lowball yourself and end up getting a concession that is worth less than what's needed to fix the issue. HOWEVER they're legally obligated to disclose the things that you've discovered in your inspection to future prospective buyers and that will reduce the saleability of the home, so there's some motivation to get the home sold regardless if the concessions are exactly in line with the actual costs from contractors to have those things fixed.
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Oct 24, 2016 16:11
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Dwight Eisenhower posted:HOWEVER they're legally obligated to disclose the things that you've discovered in your inspection to future prospective buyers and that will reduce the saleability of the home, so there's some motivation to get the home sold regardless if the concessions are exactly in line with the actual costs from contractors to have those things fixed. How would future prospective buyers know, if they chose to keep it secret?
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Oct 24, 2016 16:37
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LogisticEarth posted:So, I just got the inspection report back and the house is not total poo poo like the last one we had a contract on. However, there are a few major things that I'd like to have deducted from our original offer. Things like the cost of having the chimney relined, termite treatment, and having a radon remediation system installed. Quotes are good not only for determining how much to ask for, but for getting a specialist expert opinion on a problem turned up by a general inspector. Especially for the termites, as the cost of those repairs are much more variable than the others. SouthShoreSamurai posted:How would future prospective buyers know, if they chose to keep it secret? No one is waterboarding the sellers to get it out of them or anything, no. But the next buyer will know the deal fell apart on inspection from the timing and ask what the problem was/get their own inspection, plus in my state at least if the real estate agent participates in lying they can be sued with some substantial punitive damages.
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Oct 24, 2016 16:54
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supercrooky posted:Quotes are good not only for determining how much to ask for, but for getting a specialist expert opinion on a problem turned up by a general inspector. Especially for the termites, as the cost of those repairs are much more variable than the others. I wouldn't get a concession out of them for termites, I would demand they repair it. Let them figure out how much it costs, including whatever hidden damage they find when they start ripping out wood.
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Oct 24, 2016 17:04
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H110Hawk posted:I wouldn't get a concession out of them for termites, I would demand they repair it. Let them figure out how much it costs, including whatever hidden damage they find when they start ripping out wood. It's a 120 year old house in PA. Some termite and powder post beetle damage is practically guaranteed. Not to mention the place was way overbuilt, as older homes tend to be. As there was no evidence of any structural problems or active infestation, and this is an estate sale, I'm not expecting any repairs to be done by the seller. It's more of a "ok, we see that termites were here at one point, can you prove/guarantee that it's been treated? If not, then we'd require a reduction in price to pay for treatment". For what it's worth, the inspector said the house was in really great condition for its age, and he'd buy it in a heartbeat if he were in our shoes. This is the second house we've used him on, and he was very thorough both times. He spent about 5+ hours at each place.
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Oct 24, 2016 17:39
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LogisticEarth posted:It's a 120 year old house in PA. Some termite and powder post beetle damage is practically guaranteed. Not to mention the place was way overbuilt, as older homes tend to be. As there was no evidence of any structural problems or active infestation, and this is an estate sale, I'm not expecting any repairs to be done by the seller. It's more of a "ok, we see that termites were here at one point, can you prove/guarantee that it's been treated? If not, then we'd require a reduction in price to pay for treatment". Talk to your realtor, but in 100% of the anecdotal evidence I have the sellers solve termite issues while the buyers do other "improvements" like your radon system.
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Oct 24, 2016 18:28
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H110Hawk posted:Talk to your realtor, but in 100% of the anecdotal evidence I have the sellers solve termite issues while the buyers do other "improvements" like your radon system. We had to deal with our own termite issues, so no, it's not a definite. Also especially for estate sales, they don't want to do *anything* and it's usually way easier to haggle on price reductions than to get them to fix a single thing.
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Oct 24, 2016 18:51
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moana posted:Step 3 Wish I lived somewhere rent cost less than a mortgage. If I had the savings for a deposit I'd be able move into a better home and all for a mortgage that's half my current rent. I'm hoping to have the savings of a deposit in 12-18 months to get out of this crazy rental market.
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Oct 24, 2016 20:23
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Making the sellers do a repair on a house they will immediately not own any more is a fantastic way to get the absolutely cheapest most shoddily done repair possible.
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Oct 25, 2016 00:33
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Marenghi posted:Wish I lived somewhere rent cost less than a mortgage. If I had the savings for a deposit I'd be able move into a better home and all for a mortgage that's half my current rent. The savings might not be as huge as you expect if you're just comparing your current rent to the monthly cost that you got from an online mortgage calculator. It's not Rent vs Mortgage, it's Rent vs Mortgage + Insurance + Taxes + Routine Maintenance + Long-Term Maintenance + HOA fees + Emergency Repairs + Extra in Utilities + Oh god we found black mold behind the baseboards and the neighbor is threatening to sue us because I gave a dirty look to their dog who won't ever stop loving barking, what have I done, dear god what have I done
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Oct 25, 2016 08:40
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I know there's the extra cost besides the mortgage. But outside of buying one of those dodgy houses built with pyrite it should still be cheaper than renting. The only downside I can envision is if I need to relocate whether I'd be able sell off the property or rent it out.
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Oct 25, 2016 13:39
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Speaking of areas where rent is unjustifiably higher than a mortgage payment.. I've been looking into buying small homes in the 60-70k range that rent for 1-1.2k per month. But in researching the dynamics of this type of market I came across this chart: Jesus Christ look at that mess. Rents are starting to flatten out, at a time when younger people are deciding to keep renting at record rates. That gap between mortgage payments and rent is a poo poo ton of profit for someone. If lenders are losing owner occupant business I wonder if they'll come up with new products that make it easier to buy investment properties without 30% down and other worse terms.
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Oct 25, 2016 14:16
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Jealous Cow posted:Speaking of areas where rent is unjustifiably higher than a mortgage payment.. I've been looking into buying small homes in the 60-70k range that rent for 1-1.2k per month. But in researching the dynamics of this type of market I came across this chart: I'm in Houston, and the PITI on a 2400 sqft home brand new from the builder was less than the rent I was paying for a 650 sqft apartment. I work with a bunch of guys who have become amateur landlords because houses rent for about $600-1000 more than the PITI on them, so you can immediately be massively cash flow positive. There's some parts of the US where I just don't get why people rent at all because it looks like owning comes out ahead even after 2 or 3 years.
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Oct 25, 2016 16:11
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Twerk from Home posted:I'm in Houston, and the PITI on a 2400 sqft home brand new from the builder was less than the rent I was paying for a 650 sqft apartment. I work with a bunch of guys who have become amateur landlords because houses rent for about $600-1000 more than the PITI on them, so you can immediately be massively cash flow positive. There's some parts of the US where I just don't get why people rent at all because it looks like owning comes out ahead even after 2 or 3 years. Cleveland, Indianapolis, mobile/Birmingham, and a few other areas are like this. I feel like I'm missing something because this seems too easy. Once you have half a dozen or more properties any issues with one become much less impactful overall. If I could get a 500-750k portfolio loan I could buy 10 properties and pay back the loan in ~7 years after other expenses and management fees.
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Oct 25, 2016 18:31
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Leperflesh posted:Is the three days of rent they pay you, taxable income? If it were me, I'd rather push closing back than go through the hassle of a rental agreement, insurance, any taxes, etc. for three days' occupancy. If you rent your personal residence out for 14 days or less during a tax year you do not have to claim the rent as income.
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Oct 25, 2016 18:41
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Leperflesh posted:Making the sellers do a repair on a house they will immediately not own any more is a fantastic way to get the absolutely cheapest most shoddily done repair possible. We picked the contractor our seller used to do radon mitigation based on a recommendation from our agent; hopefully our agent steered us in the right direction, but we hopefully avoided this. We also almost walked on the house when the seller's agent kept insisting we could get the repair for cheaper but wouldn't provide a quote so 
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Oct 26, 2016 03:28
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My dad has closed on the house with the carpets in the bathroom.
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Oct 26, 2016 03:43
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Jealous Cow posted:Cleveland, Indianapolis, mobile/Birmingham, and a few other areas are like this. I feel like I'm missing something because this seems too easy. Once you have half a dozen or more properties any issues with one become much less impactful overall. If I could get a 500-750k portfolio loan I could buy 10 properties and pay back the loan in ~7 years after other expenses and management fees. The hard part is that you actually have to be a landlord. Sometimes that's going to be easy, other times that's going to be very hard
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Oct 26, 2016 06:56
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We got credits for a sewer repair - would it make sense to hold off on this work until after the rainy winter? They have to dig a ditch and the whole 9 yards.
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Oct 26, 2016 07:48
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That really depends on the repair, you should maybe ask an expert. I'm not a plumber but if it's something like a bellied line then you can probably wait, since I know that some people basically treat it like an ongoing maintenance issue if the dip isn't super deep
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Oct 26, 2016 08:19
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QuarkJets posted:The hard part is that you actually have to be a landlord. Sometimes that's going to be easy, other times that's going to be very hard I'd use the same management company I used for my current property. They offer a discount if you have multiple properties with them. So far it's been shockingly easy, but that's probably because we kept up on maintenance on our last place before moving and renting it out.
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Oct 26, 2016 14:12
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Drunk Tomato posted:We got credits for a sewer repair - would it make sense to hold off on this work until after the rainy winter? They have to dig a ditch and the whole 9 yards. The company that replaced my side sewer just dug access holes to get to each end of the pipe and then hydraulically pushed the pipe in place. No ditch required. That said, I know you're in the Seattle area and depending on the soil/area, it might be worth waiting for the ground to dry up.
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Oct 26, 2016 15:33
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