This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.
Question: Do I have to move out immediately after selling my home?
Answer: This actually might seem like a silly question with an obvious answer. Most people assume that once they no longer own the home they must move out. And while that is correct in the long term, sometimes you have some time after selling – if you work it out in advance!
A lot of times, the homeowner’s main concern when considering selling their home is finding their next home. Oftentimes, a seller’s market is the time to sell, but then the sellers become buyers and the fear of not finding a new home becomes real! If this is the case, asking for a Post-Settlement Occupancy Agreement might be the best option. It is always a good idea to have your agent know your timeline, so that they can properly communicate with agents whose clients are interested in submitting an offer.
A post-settlement occupancy agreement outlines a timeframe, and potential cost, of staying in your home past settlement. The new buyers are now the owners, and you will technically become a tenant while you are finishing up moving out. The terms are always negotiable. There is an option for the former owners to pay a flat rate, or a daily rate, and there is a security deposit held by the settlement company.
In some cases, if it is a competitive situation, the new buyers might not charge for the extra time in the home. This can be a leg up against other offers and those buyers who are competing for the home. Some buyers can afford to give the seller some free weeks, since their first mortgage payment will not be due until the 1st day of the 2nd month after settlement (for example, if you settle on April 1, the first mortgage payment will be due on June 1).
The buyer is still protected, because if there is any damage to the property, or if there are disagreements about move-out, the settlement company holds the security deposit as an independent party.
Once the former owner moves out, the buyer has three days to either provide a list of damages – reasons to withhold the deposit – or notify the settlement agent to release the deposit.
If you are selling and need a little extra time to pack and/or find a new home, a Post Settlement Occupancy Agreement may be a great option for you. Talk to your agent about whether this is a good fit for you. And don’t hesitate to reach out if I can help in any way.
Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.
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Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.
