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Mountain Musings by Sharron

Did I Make a Mistake?

By: Sharron and Steve Lobman
Wednesday, June 13, 2007 5:12 PM

Okay, here is the scenario.

I have a client who wishes to rent another agent's and brokerage's listing for a trial period of 2 weeks. It seems that she wants it for her second home, but hubby is afraid he would be bored here. So, the arrangements have been made with the seller and the listing office. This 2 week rental will begin on July 7th and continue for a 2 week period.

 Our "deal" is that the money that half of the money that the potential buyers pay for rent during this trial period will be applied toward the purchase, if they decide to buy,

I stipulated that the house would not be shown during this trial rental period. The house has been on the market for more than 6 months, and it is a traditional type of home that most buyers in this area are not looking to buy. Especially with the road noise.

The sellers do not want to "take it off the market" while our potential buyers are staying there.

I need your feedback. Please be kind!

H

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Comments

Cathy  Clark
Member Since '06

Cathy Clark said:

Now that's creative!  Do you do seasonal rentals?  The rent is always significantly higher for a seasonal and that might make it more worthwhile to the Seller to take it off the market for two weeks.  Also, the Buyer may be less inclined to pay inflated rent for the privelege of a two-week vacation.  I don't know what the rent is so I can't really say.  Is this near the water?  Are they just looking for a vacation?

The pitfall here is that the potential Buyer has the opportunity to find everything wrong with the house and start nit-picking. The dishwasher's a little slow ($500 off), I don't like the noise ($1,000 off, please), etc.

In addition, when I moved to Cape Cod, I HATED it!  I thought "they" rolled up the sidewalks at 3:00 p.m. ("We" don't, by the way). I came from suburban Boston, for crying out loud.  I could take a train or bus anywhere and loved every minute of it.  It took me a little longer than two weeks to fall in love with the Cape.  Now you have to drag me kicking and screaming to haul my butt over that bridge!

Hey, it may just work!  I would just make sure you know what hubby's interests are and keep him busy.

You're going to be working hard on this one!  Good Luck!

June 13, 2007 3:37 PM
Karen Weger
Member Since '05

Karen Weger said:

Interesting. I can definitely see Cathy's point, but may work. I would not expect the home to be taken off the market during that period unless they contract and go under option. If it is shown very little then they have nothing to worry about. But I would not take my home off market during the peak season for a little rent money. Also, If others are looking at the home, you know the old saying, makes others more motivated to do something knowing there are showings going on. I would make sure they have first option, but only to present an offer, no guarantee on acceptance if other offer is better. They should be given a 24 hour notice of showings.

Good luck!

June 13, 2007 4:07 PM
John  Bourassa
Member Since '03

John Bourassa said:

Sharron, I agree with the girls.  

Trial rental will give them a chance to find all that is wrong witht he house and the location and may decide to not buy it.  Also, I agree with Karen, don't take it off teh market because of Cathy's explanation.

Rentals are so colorful for such little compensation.

June 13, 2007 4:21 PM
Mary Welch
Member Since '04

Mary Welch said:

If it was my listing, I would advise my clients to not rent it for two weeks unless the buyers are contracturally obligated to purchase the property and only after they have signed a final walk through agreement to take the property as is. This trial stuff doesn't make sense and I can't believe the seller would want to do this.

Even when we have a contract in place we are leary about letting a buyer have early occupancy because of all the stuff that could happen before closing. And if it can, it will. But if they agree to this arrangement, I would not take it off the market because it doesn't have a contract and it is still for sale and you don't want to miss a potential sale.

Ok, I tend to think worse case scenario and wonder if your state has a law about removing pregnant women from a property? I don't know, I would be sweating for 2 weeks for sure.

June 13, 2007 4:48 PM
Klaus Nicholson
Member Since '07

Klaus Nicholson said:

Very creative on your part.

June 13, 2007 6:01 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

It is very creative but I have to agree with Mary. I would not do it. Road noise is one of the things that is most disruptive in the sale of a home. I have seen some of  the nicest homes with the problem and Iwon't list them because I have to find someone that lives inside or is deaf. In Florida only one of the criteria meets the majority. Airport noise and road noise is a big obstacle. A good developer can overcome most of the road noise but the airport noise is not as doable. Since they knew the noise existed, what was the possible outcome. Too much noise or a toulerable level. If I am a buyer which would I exude as my mantra. Now where do you stand on negotiations for price. I am providing you living testimonial why this place won't sell. Believe me or acept my offer!

June 13, 2007 6:14 PM
Vance Remele
Member Since '06

Vance Remele said:

What!! Huh! Yikes!!

I agree with John, that is a bad thing to do, just like a early move in agreement is, they will pick everything apart, they are looking for a test drive, who are these people, what do you know about them?

(but "hubby" give me a break ,is afraid he would be bored here.)

This story sounds like a fairy tail, the only thing missing is

Once Upon A Time.....

Did you ever see that movie Pacific Heights? well at least in Georgia evictions are quick here...

Vance

June 13, 2007 6:45 PM
Mary Welch
Member Since '04

Mary Welch said:

Sharron, I am thinking those of us who wouldn't do it are those that have. I certainly have let people have early possession even with a contract in place and it was a nightmare. So, we aren't picking on you, please don't take it that way. I truly hope it works out, but the 2 weeks will feel like 2 years. Just to speed this up, after one week I think I would ask the buyer if they are ready to move on it.

I'm just worried because I have never had it work for me.

June 13, 2007 6:50 PM
Vance Remele
Member Since '06

Vance Remele said:

Is this home is furnished right?

I did not see that mention here,,

What if these people have a garage sale and sell off all the belongings while they are there.

Now that should make you loose some sleep Sharron and Steve.

Look I had one of these deal blow all to hell just last year the damage was unbelievable  it was in Marietta.

I am not saying that this may happen to you, I swore never again!!!!

Whose home was it ?????? Mine

June 13, 2007 7:01 PM
Anson Simque
Member Since '06

Anson Simque said:

I don't know that you made a mistake, it may work for you but I wouldn't do it. Too many things that can go wrong. What if they trash the place and then say they don't want it? Hope all goes well, please let us know in 2 weeks.

June 13, 2007 8:08 PM
Sharron and Steve Lobman
Member Since '06

Sharron and Steve Lobman said:

Okay, I withheld some pertinent info,

Wife is 63, hubby is 82. She wants the house, and is hoping that in the 2 week period she can convince hubby that he will be happy here.

June 13, 2007 8:18 PM
Carmen and Jeff Bills
Member Since '07

Carmen and Jeff Bills said:

Well I doubt they will showing up with their friends form Animal House, but it is a strange one. I hope it all works out for you guys,

June 13, 2007 8:39 PM
Mary Welch
Member Since '04

Mary Welch said:

Ok, so she isn't pregnant. Are these people someone you would let live in your house, if you had one for sale, to try it out? Just curious.

June 13, 2007 8:39 PM
Todd Clark
Member Since '06

Todd Clark said:

What are the laws on getting someone out if they should take possesion and decide not to leave or pay? It could be a way for them to take possession and stay for free for a very long time.

June 13, 2007 10:52 PM
Vance Remele
Member Since '06

Vance Remele said:

"Wife is 63, hubby is 82. ."

''She wants the house, and is hoping that in the 2 week period she can convince hubby that he will be happy here''

Kinda like a second Honeymoon ya think !!! :)

Vance

June 14, 2007 7:02 AM
Sharron and Steve Lobman
Member Since '06

Sharron and Steve Lobman said:

Well, they are giving a $300.00 cash deposit plus the whole daily rate and cleaning fee before their visit.

June 14, 2007 6:17 PM
Cyd  Weeks
Member Since '05

Cyd Weeks said:

I see nothing wrong with it at all.  You've done a short term rental.  What's the big problem?  There is no more liability or risk for this home as there is for any other short term rental.  Only difference is the renters are 'thinking' of purchasing the house.   I don't see why the seller wouldn't take it off the market for 2 weeks, they are being compensated for it.   Then again, I don't see why the renters would care either since it's been sitting there and chances are it wouldn't be shown anyway.   No, I don't think you made a mistake at all...unless...YOU aren't being compensated for bringing in the rental.  :)

June 15, 2007 3:57 PM
Sharron and Steve Lobman
Member Since '06

Sharron and Steve Lobman said:

Cyd,

My only compensation will be the pure joy of helping others!  and...fingers crossed, making a sale!

My next job will be to entertain the old guy--show him around and help keep the BOREDOM away! (Nothing illegal, of course)

June 16, 2007 1:22 PM
Mary Welch
Member Since '04

Mary Welch said:

Sharron, you are running an escort service now? Gutsy lady you are. I hear it does pay better than real estate so you may get to quit your day job. LOL, JK!!

(sorry, you know how hard it is for me to resist statements like this)

June 16, 2007 10:25 PM
Sharron and Steve Lobman
Member Since '06

Sharron and Steve Lobman said:

lol @ Mary!

June 17, 2007 10:54 AM
Cyd  Weeks
Member Since '05

Cyd Weeks said:

Sharron,

I guess it is up to you... I would have written in a fee, small as it may have been, for the rental.  Short term rentals here are done at a 1/2 month fee or they carry a 30% charge for vacation rentals.  Took you time, money and creative thinking to get the deal through.  It would have come from the seller/owner.  IMO, you should have been compensated.  But, again...that's up to you.

You can still be a 'good guy' and get paid at the same time. :)

June 19, 2007 1:49 PM

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Sharron and Steve Lobman
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Sharron and Steve Lobman
Member Since '06

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