The early spring real estate market in Newton, MA saw lots of competition at certain price points. In a competitive real estate scenario, a buyer may want to offer a seller a “leaseback” or a “use and occupancy” option to distinguish their offer. In this scenario, a buyer purchases a home and allows the seller to stay in the home for a specific period of time. Typically, if there is a lender involved, the lender will allow a lease back of up to 2 months. Sellers often like a lease back because it frees them up to make a purchase without the stress of selling their home after the fact. Two of my Newton sellers were lucky enough to receive and then accept offers with a leaseback this spring and one of my Newton buyers had an accepted offer with a leaseback.If you are a buyer, you should carefully consider the following prior to offering a leaseback:Discuss the leaseback option in advance with your lender. Most but not all lenders will allow a leaseback. Most lenders will have restrictions.Carefully think through the terms of the leaseback with your agent and spell out in your offer the terms of the proposed leaseback.
If you are looking to move immediately, a leaseback might not be the right for you.
