I have lived in my home for 30 years and am nervous about moving out so that the buyer can occupy the home at closing. It seems there is a risk involved since I could spend time and money moving out and the buyer could back out at the last moment. I cannot afford to spend all that time and money and then the deal not close. It puts me in a bad situation. Do you have any suggestions?
You are correct that there is a risk involved. We try to minimize that risk by making sure the buyer is fully aware of the property condition prior to an offer being made. It is very important that the you disclose everything about the property so there are no surprises during inspections.
However, there can still be obstacles that are out of your control that can delay or even cancel a contract. Once solution is to write a rent-back agreement with the buyer. Since the new buyer will actually own the property at closing and will be responsible for the mortgage, insurance and taxes, you agree to rent the property back from the owner for a period of time – anywhere from a day or two up to possibly 60 days. This allows you to collect your cash up front that might be needed for moving, and ensures the deal closes before going to the effort of moving. However, you must keep in mind that most buyers are also doing a simultaneous closing from the home they’re selling and this situation might prove difficult for them. Fortunately, these particulars are all determined and negotiated upfront when an offer comes in, so there are no surprises at closing.
Like any part of the real estate contract, this is negotiable with the buyer.