Skip to main content

Ever heard of a house sale with a buyback provision? Any thoughts?

I'll be moving soon but will likely return. My options one are to leave my place vacant, rent it, or sell it.

Due to the unique and attractive qualities of my house, I''m exploring a fourth option: selling my place with a buyback provision. I think in terms of the stock market and this is like selling stock and buying a call option.

Anyway, how difficult would it make selling? Scare people away because it is uncommon, or possibly be attractive for to the y terms? And because of how uncommon it is, what kind of terms could I expect?

Here's an example. Let's say my home is worth $500k. I want to sell it now with a buyback provision such that I can buy it back in 5 years.

It could be a discount or a premium structure, like bonds.

A. I'll sell it to you for $350k today if I can buy it back at the same price (or perhaps something higher) in 5 years. If I don't want it in 5 years, then you keep it at this awesome price. If I want it, you'll have had 5 years with an underpriced mortgage.

B. I'll sell it to you today for $500k, but I have the option to buy it back in 5 years for a premium at $600k (or market rate, or the greater of these or whatever).

I think A would be more appealing as a buyer since I get immediate benefit. My risk as a buyer is that I need to house hunt in 5 years.

For any agents, have you seen these provisions in the wild before?

submitted by /u/wsc-porn-acct
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/10gtwvl/ever_heard_of_a_house_sale_with_a_buyback/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

How to Avoid Property Scams in Delhi?

Here’s What You Should Know! Commercial Real Estate (Non-Residential) Buying a property in Delhi can be tricky, especially with all the stories about scams and shady deals. If you're in the market, here are some tips to keep yourself safe:Double-check the documents: Always verify ownership and approvals. Don’t just take someone’s word for it—look at the actual papers. Do your homework on prices: Compare similar properties to avoid overpaying. A little research can save you from a bad deal. Work with trustworthy people: Whether it's a seller or an agent, go for someone who's transparent about pricing and the process. If they’re dodging questions, that’s a red flag. Ask for reviews or references: If someone you’re dealing with has a good track record, they won’t hesitate to share testimonials or connect you with previous clients. I’ve noticed that some property services have started focusing on things like verified listings and clear communication, which makes the whole proc...
Post a Comment
Read more