Closing a Sacramento Escrow and Finding a Rental in November
In any real estate transaction in Sacramento, getting occupants out of the property so the buyer can take possession at closing is often a juggling act. Buyer possession can cause difficulty because stuff can change during escrow and the sellers might have no place to move, despite their best intentions. This time of year, it’s even more difficult. In talking with a seller yesterday about her brother moving out of a home that is in escrow right now, I suggested that he might be better off trying to find a rental NOW that is available on November 1 and negotiating with the owner to let him move in on November 15th, which is a few days before our closing date.
Because if he waits until November to start looking, most of the available rentals will be ready for occupancy on December 1, and that is too late. Not only that, but the number of rentals dwindles this time of year. Few people want to move over the holidays, so there are fewer rentals becoming vacant. Even if he has to pay for November 1, he’s better off than having no place at all to move. Well, there is always a Motel 6 somewhere, I suppose.
For Sacramento sellers who are leaving the state, it’s no issue to close in November or December, but for everybody else who is not buying a replacement home, finding a rental in November is radically difficult. The time to think about that issue is before November, like right now.
To alleviate this potential difficultly, I comb through my listings on a regular basis to determine if any of my sellers will have a problem finding a rental or just where they are planning to move. One seller is headed off to Texas and already has a place. Another is moving in with family. Three others live out of state. And yet another is doing a short sale and, fortunately for that family, many of the short lenders now allow a rent-back; whereas in the past arm’s length agreements used to prohibit them. Now, many lenders OK it for a minimum time period of up to 90 days. This is useful information for some agents who are unaware of this change in policy.
But for this one guy with limited vision and even fewer resources, I imagine it will be a struggle. The fact that remains is a smart Sacramento Realtor will make sure her clients have some place to go. Especially if it means trying to find a rental in November or December in Sacramento. I hope my seller will be able to assist her brother in finding a rental. If not, there are options such as putting stuff into a storage unit and checking out Extended Stay.