You know you’re a Bay Area home buyer when the idea of a “rentback” to a home seller gives you chills. What if the home owner doesn’t leave? What if you become a landlord? What if you have to end up evicting them?
Enter the California Association of REALTORS® (CAR) form: “Seller in Possession.”
Basically that form is an agreement to “license” the seller’s soon-to-be former home to them for up to 29 days. There are all sorts of terms included in the form that need to be carefully considered especially so the buyer feels comfortable.
Making offers on owner-occupied properties where the seller wants extra time to move out can be a great way to land a home you love.
Here are 3 examples of how the Seller in Possession form worked out in recent successful purchase offers:
- Seller had identified a house they wanted to buy but had to prove their old house was actually going to sell in order to get a loan on the new house.
- Seller didn’t want to move until the school year was out. This was a long escrow then a Seller in Possession period. This timing and arrangement ensured that the seller was not living there more than 30 days.
- Seller was living at home while the property was on the market and needed time to move out upon closing. (This is a very common scenario in the 2024 housing market where there is little inventory; however sellers can access some great bridge loans to buy before they sell to attract more buyers!)
Using the SIP form is just one of the tips in a San Francisco Chronicle article that includes some of home buyer strategies that have helped my clients win their ideal homes, often in the face of multiple offers.
Get in touch with any home buying questions and ideas. Here is a sample SIP form.
