HAPPY MOTHER”S DAY!!! I hope everyone reads this blog quickly and goes out and enjoys the day with Mom!
These days it is often difficult to buy a home if you own one already. The qualification of debt to income (DTI Ratios) are make getting a loan difficult, often seemingly impossible. Further complicating the greater Phoenix real estate market is that sellers are increasingly reluctant to agree to sell homes with contract contingency of the buyer needing to sell their home in order to make the transaction work. So, what do buyers do?
They need to sell their home first. Though, what do you do after your home sells, prior to buying your new home? Where do you live?
Short-term rentals are tough to find, many Phoenix home communities do not allow short-term rentals. Additionally, if you find one, you still have to pay for moving costs in and then out, making the process more expensive. So, I am getting a lot of requests for pre-possessions of homes.
First of all, what does pre-possession in real estate mean? It is a situation in which the owner of the home lets you move-into the house prior to close of escrow.
Second, is it permissible? Yes, it’s legal. However, bank owned properties never allow it. Also, the home needs to be vacant, or the occupants need to be able to move quickly.
Third, is it a good idea? If the home is a short-sale than “No”! If you move-in and the short-sale does not get approved, then you would be forced to move out. Maybe not a big deal, but remember, your earnest money might be at risk.
- Do seller allow it? Does it happen? Yes, and here is what you need to be aware.
- Make sure the buyer has a lease in place.
- Make sure there is clear explanation of what happens to earnest money if the transaction does not close escrow.
- Make sure the buyer/tenant has renters insurance.
- Do not move-in until you have the conditional loan approval
- Do not move-in until you have the appraisal.
There are other concerns that need to be addressed. Both the buyer and seller should be represented by an experienced Phoenix Realtor who has done this before. If not, ask them to speak with their brokers on your behalf. Earnest money is at risk if you are a buyer. The seller may have to spend time and money evicting the buyer if they are difficult. There are legal and liability issues as well.
If you are considering this, please email me at email@example.com or call me today!
James Wexler ~ Associate Real Estate Broker in Scottsdale ~ 480.221.8080
Please take a look at some of the best Pinnacle Peak homes for sale:
1 - 2 of 2.
See more Real estate in the Pinnacle Peak community.
(all data current as of 6/19/2013)
$1,750 : 8926 E Calle Buena --, Scottsdale2 beds, 2.00 baths
$349,000 : 24944 N 74th Place, Scottsdale3 beds, 2.50 baths
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