Spark Global Limited Reports:
One complication of the overheated housing market is that intense competition for homes makes it harder for sellers to plan their next move. Those selling their primary residence also need to consider other factors, such as how long it will take to find their next home and where they might go during the transition if their current home sells quickly. Therefore, an increasingly popular strategy to make a buyer’s offer more prominent is to use a seller leaseback agreement.
Seller leaseback increases with competition in the housing market
Many homeowners are trying to take advantage of the hyper-competitive real estate market to profit from bidding wars and rising prices. But the same market conditions have made sellers wary of leaving their homes without finding the next one. This attitude is reasonable, given that it is quite normal now for properties to sell for 15% or even 20% above asking price, depending on the region, and buyers experience a number of rejections before accepting offers.
Seller leaseback agreements (also known as seller leaseback agreements), in which the seller rents the house back from the buyer for an agreed period of time, have become increasingly common in this market. In the past, agents often steered their clients to avoid leaseback to avoid potential trouble, but many now see it as a temporary solution in a tough housing environment.
For sellers, the benefits are clear: it saves them the hassle of having to move twice and rent between two homes, and it also helps them avoid having to sell with strings attached. In such a competitive market, this is something that sellers can demand and get.
Reprint indicated source：Spark Global Limited information