Real Estate Myth: It’s a Sellers’ Market, so sellers can get unlimited post-occupancy from buyers.
Real Estate Myth: It’s a Sellers’ Market, so sellers can get unlimited post-occupancy from buyer.
It's a seller's market let's get unlimited or an extended amount of post-occupancy. That's today's myth. Some realtors are advising their sellers to request that today. Is that myth true? Welcome to another episode of Myth Versus the Truth.
So in today's market, some sellers are concerned with putting their properties on the market and taking time to find another property. And that's understandable. However, a post-occupancy of six months or four months or anything past two months, we will have some hiccups. The reason why is because some of these buyers may be obtaining financing. And with the financing, some lenders may have some rules and restrictions as to how long before they can move into their property.
Also, you have to understand the emotional point of a first-time home buyer or any homeowner. When they like a property, they did a closing, hey, they want to move into this property. So no one will give an unlimited post-occupancy because their family just looking to move into their future home. So remember that too.
We've been approached by some investors that they have properties that they are under contract rented for a year. So they want to put the house on the market. They want to get the highest and best. And what happened? They want the buyer to respect, the lease that is in place, I mean, it must be respected the lease that is in place and acquire the property with the tenant. You can get some hiccups there as well because I mean, if the buyer is having a loan for the house, they can't wait. You will get into the same issue that Chantale was explaining before with the lender. The lender only will approve a certain amount of time after closing to be in the property. So watch out for that too.
Adding to that, you can find another investor who is willing to pay you for that property. But again, in order to get the highest and best, you have to be ready to have the property available for any kind of buyer. So the highest and best sometimes would be home buyers who want to buy for themselves to live. An investor will never pay you the highest and best. They have to make money.
Unlimited occupancy, even though it's a seller's market, it's almost impossible. Thanks for watching. We'll see you in another episode of Myth Versus the Truth.
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