Does a Rentback Discourage Buyers?
In the Arlington market, rentback agreements are fairly common requests made by sellers. They allow a seller the option of remaining in the property after closing for a specific amount of time and for a specific cost, with an additional “security deposit” held in escrow in case something happens between closing and the final move out.
A client recently asked if rentbacks discourage buyers from pursuing a specific property if a rentback is requested. In my experience, the answer is no. Many buyers can be flexible on closing, whether they live with family, are renting month to month, or are living in a property they own and can plan ahead based on the purposed close date/move date. If someone wants your unit bad enough, they’ll wait…and if they can’t wait, usually they’ll give you an incentive to be out faster.
You can read more in depth about what exactly a rentback is and how it works here.