gardenmom5 Posted July 19, 2016 Share Posted July 19, 2016 (edited) dd has made an offer on a house in a neighborhood they've been looking at for several months. (they've looked at around 20 houses in this neighborhood. many have been multiple offers) it turns out the current one they've made an offer one - is owned by a real estate agent. they agent is friends with the seller, and they're questioning how much their own agent is actually representing them rather than making a good deal for her friend - the seller. it's a nice house, and looks like it has been well maintained.. it's 10 years old. the other thing is, the seller wants to rent back the house after closing for as much as 3 1/2 weeks. - their agent tried to get them to give it to the owners for free - as it is, they're down to $48 per day (supposedly will cover their rent on their apartment.) I think they should ask more as an incentive to the owner to find a place (supposedly the owner has plans to build - but hasn't made plans for where they'll go after they sell.) I did tell them to put a firm - must be out by__ date, and not do a final close until they're out. Please suggestions? advice? Edited July 26, 2016 by gardenmom5 1 Quote Link to comment Share on other sites More sharing options...
OneStepAtATime Posted July 19, 2016 Share Posted July 19, 2016 Ugh! That could be a very dicey situation. The fact that the agent was trying to encourage them to let the owner remain in the house without paying rent sends up read flags for me. Even more red flags for the fact that the owner is going to build but doesn't seem to have plans for where they will live in the interim. And there can be a whole host of liability issues with the former owner remaining in the house once the new owners take legal ownership of the house. It can be done and I have done so but I don't recommend it. Can your DD hire a real estate lawyer to check over everything before they sign anything more? I agree, if they really want this house and they have decided to let the owner remain for a time there needs to be an absolute move out date (not long) and a penalty incurred for not meeting that deadline. How attached are they to this house? Has there been an inspection? On a side note, don't trust inspection companies to do a thorough job. I would 100% be there for the inspection if it hasn't happened yet and I would walk the entire house and look at everything myself in great detail. 2 Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 19, 2016 Author Share Posted July 19, 2016 the inspection is tomorrow. the fact the seller and agent are friends was pure coincidence. it just came on the market- and dd &dsil are the ones who told her they wanted to look at it. they really like it -but they've looked at a lot ofhouses - and made offers on as many as ten. (a lot of multiple offers) this is the first one that was accepted. 1 Quote Link to comment Share on other sites More sharing options...
OneStepAtATime Posted July 19, 2016 Share Posted July 19, 2016 That makes it tough. I know there are a lot of markets that are really hot right now. This may work out just fine. I would want a real estate lawyer to advise me, though, and I would definitely be at that inspection. Quote Link to comment Share on other sites More sharing options...
kathkath Posted July 19, 2016 Share Posted July 19, 2016 We just sold in a hot market to multiple offers. Our realtor negotiated for us to stay for free for 2.5 more weeks. We could have gone with a different offer and they wanted the house so they agreed. We were offered more by someone else so to us it seemed like a fair deal. Quote Link to comment Share on other sites More sharing options...
datgh Posted July 19, 2016 Share Posted July 19, 2016 I would get a lawyer involved and get their advice on what kind of paperwork, etc. should be drawn up so that your daughter doesn't have any surprises. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 19, 2016 Author Share Posted July 19, 2016 thanks for the suggestions. I'll reiterate they might want to bring a RElawyer into it - just becasue of the friendship between buyer's agent and seller. and . . . there's indication buyer's agent is NOT being as impartial/professional as they should be. I also had suggested they remind the agent she's working for them - not her friend. and if either of them are able to be at the house for the inspection. dsil works about 15 minutes away - but dd is further. Quote Link to comment Share on other sites More sharing options...
hellen Posted July 19, 2016 Share Posted July 19, 2016 It's possible the offer was accepted because of the friendship. Accepting that particular offer helped the seller's friend instead of some other real estate agent. It's a weird situation but not necessarily all bad. 2 Quote Link to comment Share on other sites More sharing options...
Lanny Posted July 19, 2016 Share Posted July 19, 2016 I believe the part about allowing the current owner to continue living there, might open a can of worms and potentially big legal problems for your DD and her DH. That makes them his Landlord, unless and until he does move out. I would suggest they withdraw their offer on that particular property. This would be my suggestion, regardless of where the property was located, in the USA or elsewhere in the world. GL to them! 1 Quote Link to comment Share on other sites More sharing options...
hellen Posted July 19, 2016 Share Posted July 19, 2016 My in-laws live in Texas. When they sold their home they rented it back for a few weeks. I don't recall why. Maybe that practice is just more common in Texas. Quote Link to comment Share on other sites More sharing options...
Bambam Posted July 19, 2016 Share Posted July 19, 2016 We bought and sold several houses in TX as we've moved. It is fairly common here to have the previous owner rent the house for a short period of time after the close as they are waiting for their new home to close - usually less than 4-6 weeks though. I strongly second the inspection advice. I also strongly second the suggestion that at least one of them attend. I realize this is late, but I also strongly suggest the inspection be by a professional engineer. Quote Link to comment Share on other sites More sharing options...
Guest Posted July 19, 2016 Share Posted July 19, 2016 (edited) Texas has a really hot market right now. I sold our house this summer after ONE day on the market and a bidding war. We ended up with more than our asking price, in less than 24 hours on the market. It's a SELLERS market here right now. That said, I have bought and sold three houses in Texas, and it is not at all uncommon to close on a house and have the previous owner pay rent for a few weeks until they can move out. Completely acceptable and common practice here. And they absolutely should be present for the buyers inspection, if at all possible. Edited July 19, 2016 by Kinsa Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted July 19, 2016 Share Posted July 19, 2016 My in-laws live in Texas. When they sold their home they rented it back for a few weeks. I don't recall why. Maybe that practice is just more common in Texas. I don't know about more common but it is certainly not uncommon. But I know at book club last night, one of our ladies reported their house had sold, due to close on August 2 (? Maybe August 12) but they are renting it back until September 15 because their brand new house is also closing the same day and they need to put engineered floors, wheelchair bars, etc. in since they will have a wheelchair there and their builder refused to do it. Quote Link to comment Share on other sites More sharing options...
school17777 Posted July 19, 2016 Share Posted July 19, 2016 Why don't they just move the closing date back rather than renting back? 1 Quote Link to comment Share on other sites More sharing options...
Happy Posted July 19, 2016 Share Posted July 19, 2016 Leasebacks happen around here, especially with a hot market. I don't recommend more than a few days, at most. Have your daughter talk to her insurance company before agreeing to it. Some insurance companies charge an insane amount to cover a house for a few weeks in this manner. All sorts of liability. There is a reason God made extended stay hotels. :) 3 Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 19, 2016 Author Share Posted July 19, 2016 I believe the part about allowing the current owner to continue living there, might open a can of worms and potentially big legal problems for your DD and her DH. That makes them his Landlord, unless and until he does move out. I would suggest they withdraw their offer on that particular property. This would be my suggestion, regardless of where the property was located, in the USA or elsewhere in the world. GL to them! I have heard of 'renting back'. I know people who've done that for several months. (school calendars - bought in feb - stayed until june. complicated, but can work.). the bigger concerns were about the friendship between seller and agent. and the agent pushing, and acting as if it was a foregone conclusion for them to just let the seller live there for free for as much as three weeks. We bought and sold several houses in TX as we've moved. It is fairly common here to have the previous owner rent the house for a short period of time after the close as they are waiting for their new home to close - usually less than 4-6 weeks though. I strongly second the inspection advice. I also strongly second the suggestion that at least one of them attend. I realize this is late, but I also strongly suggest the inspection be by a professional engineer. I'm glad to hear it's on the common side. I know it is done without issue - it was just the particulars. (and in the back of my mind is a case we had up here of an expensive home that they owner refused to vacate after selling) I know this area is hot - they've made offers on 10 houses, and been outbid. there are also a lot of houses on the market. there are several in this neighborhood that are currently for sale (across the street is a larger house, but not as nice. theirs has a new kitchen, screen porch, etc. they wouldn't have to do much to make it theirs.) they were also told it's common to reroof every ten years due to hail damage? (so the seller is supposed to have a new roof installed.) so what is the most durable roofing material for texas? Quote Link to comment Share on other sites More sharing options...
Guest Posted July 19, 2016 Share Posted July 19, 2016 (edited) Aluminum roofing Eta: Most urban HOA's only allow composite roofing. But sometimes upper-end HOA's will encourage aluminum. Edited July 19, 2016 by Kinsa Quote Link to comment Share on other sites More sharing options...
Happy Posted July 19, 2016 Share Posted July 19, 2016 Roofing material....class 4 shingles are supposed to be more hail resistant. We put them on last year and our insurance went down a smidgen because of them. Every 10 or 12 years is about right for reroofing. We get enough hail storms to keep the insurance people paying. If you have a choice, get a ridge vent. If you can do a metal roof, they are great. Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted July 19, 2016 Share Posted July 19, 2016 Why don't they just move the closing date back rather than renting back? You often cannot get the loan to buy the second house until the first is sold. Don't have the income to carry two houses at once. 1 Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted July 19, 2016 Share Posted July 19, 2016 (edited) they were also told it's common to reroof every ten years due to hail damage? (so the seller is supposed to have a new roof installed.) so what is the most durable roofing material for texas? Not my experience in the Austin area. When we bought, the roof on our house was the original roof that was installed in the late 1990s. It lasted 15 years. We re-roofed with the next step up roof. I think it is supposed to last 30 years? Edited July 19, 2016 by vonfirmath Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 20, 2016 Author Share Posted July 20, 2016 the inspector was there for three hours, and dsil was able to be there with him. apparently, the storm they had in march was a particularly bad one (they moved into the condo their renting during that storm. dsil told the movers to just back the truck up to the garage). there is roof damage from hail, but if the house weren't for sale, it would probably be good for another five years. the seller's are putting on a 30 year roof (as opposed to the cheap roofs builders frequently use.), so the insurance should be more willing to replace/repair things if it's damaged by future storms. the inspector actually liked the house, and said it was in a better condition than most 10 year old houses he's looked at. the main floor flooring was all replaced with 'scraped wood' (dont' know if engineered or laminate) two years ago - which means they replaced it for themselves, and not to sell. it's held up to their dogs. the kitchen was also redone at that time. 4 bdrms/3living areas. so, it's a nice house in which they can have a family, doesn't really need any work. they feel good, and they'll work with the sellers on making it work schedule wise. there isn't much in the rental house market. dd appreciated all the tips that were shared. now- I can get her some books on gardening in texas . . (I know cue: hysterical laughter). there are established lawns and sprinkler systems, and shrubs around the perimeter - with one big tree in the middle of the front lawn. 1 Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted July 20, 2016 Share Posted July 20, 2016 I actually -have- a book called Gardening in Texas. I don't use it so you can have it if you like. There are also some good online resources. Including the Ladybird Johnson Wildflower Center Native Plants guide: https://www.wildflower.org/explore.php They could also go and find a local nursery. We have one in the little town I live in and they are the best resources for what is good to grow here in different conditions (Part shade, full sun, drought tolerant, etc.) 1 Quote Link to comment Share on other sites More sharing options...
Happy Posted July 20, 2016 Share Posted July 20, 2016 Neil Sperry has a good book on DFW gardening. Find and buy on his website. To garden in Texas, a gardener must understand how the heat, humidity, and soil PH work together. Work with those things and you'll have abundant growth. Fight them, and you'll lose. 1 Quote Link to comment Share on other sites More sharing options...
Seasider Posted July 21, 2016 Share Posted July 21, 2016 (edited) The daily rate needs to cover not only their rent, but the amount of interest accrued on their mortgage debt over that time period. As for the agent and seller being friends - that's unfortunate, but it's a little late to do anything about it. They may want to have a real estate attorney look at the deal before making a final contract, or perhaps a broker with a different agency will advise them for a fee? ETA I see I am late to chip in. Hope the transaction goes well. Edited July 21, 2016 by Seasider Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 26, 2016 Author Share Posted July 26, 2016 they've rescinded. apparently, the seller kept trying to negotiate more and more concessions from them. the last straw was trying to get them to end their option to rescind AN HOUR before the scheduled termite inspection. sure do like how long those texas rescission periods are . . . . I have encouraged them to find a new agent to represent them when they are ready to look again. I have to admit - of the two neighborhoods they chose to look in - . from what I can see from searching - I strongly prefer the other one which also has better schools. and a nicer park area. (closer to where her favorite cousin will be moving to next month, and his cousin who is in the area and with whom they socialize.) 3 Quote Link to comment Share on other sites More sharing options...
hellen Posted July 26, 2016 Share Posted July 26, 2016 That's so annoying. Good for them for not bending. A better house will come along eventually. Quote Link to comment Share on other sites More sharing options...
OneStepAtATime Posted July 26, 2016 Share Posted July 26, 2016 Wishing them the best. I think they made the right decision. Surely, something else will turn up eventually, and hopefully in the better neighborhood. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted July 26, 2016 Author Share Posted July 26, 2016 to what agency can they report their own agent for unprofessional conduct? she wasn't looking out for them, and favored her friend. if she couldn't be professional - she should have recused herself. Quote Link to comment Share on other sites More sharing options...
Spryte Posted July 26, 2016 Share Posted July 26, 2016 I'm glad they've rescinded. They will find a better house! Quote Link to comment Share on other sites More sharing options...
Happy Posted July 26, 2016 Share Posted July 26, 2016 to what agency can they report their own agent for unprofessional conduct? she wasn't looking out for them, and favored her friend. if she couldn't be professional - she should have recused herself. They could call or write her broker. Quote Link to comment Share on other sites More sharing options...
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