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| Buyer Pre-Possession – Is it a good idea? | |||
Possession of a home usually transfers from seller to buyer at closing, but on occasion a home buyer asks the seller to grant possession before closing. Sounds easy enough, right? After all, if you’re ready to move out, or even already in your new home, what’s the big deal? As the seller, you make the final decision as to whether an early buyer possession makes sense for your transaction, but it is rarely a good idea. Too many things can go wrong, for example: 1.) The Buyer’s loan is not approved or the sale might stall for other reasons. Now you're back to square one, trying to find another buyer, but this time with a renter in your home. This complicates your selling position, and the harder your home is to sell, the longer it will take and the more likely you will have to offer concessions to a new buyer. 2) The buyers could begin to make changes to the home--maybe changes you wouldn't appreciate, and if the transaction doesn't close, you are stuck with their "improvements." 3) The buyers could start making a list of extra "repairs" wanted before closing. These could very likely not be true repairs, but simply things the buyers would like to see changed outside of what was discovered during the inspection and repair process. 4) Worst case, the buyers may trash the house and the deal could go south, and recovering compensation for damages is likely impossible. However, there are rare times when pre-possession can benefit you and the Buyer and if you feel it's a good move, the key is to proceed with caution. You should investigate your buyers as thoroughly as possible and be sure to have a written agreement to clearly define the duties and responsibilities of both parties.
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