The reasons why a seller might need to sell to rent after closing vary, but it’s not uncommon for a seller to request a rent back. The home the seller is buying might not be available at the time your transaction closes or the seller might not be able to find a moving van on the last day of the month, when demand for moving vans is high.

Of course, as a new home buyer, you might find this situation unsettling. After all, you’ve paid a lot of money for your new home, on top of paying interest on a loan for a home that you can’t yet occupy. It’s understandable that you are eager to move in and take possession right away. Plus, you may not have anticipated finding yourself in the position of being a landlord.

 

How to Protect Seller

Treat this situation as you would any other business relationship. Buyers should never let sellers retain possession of a home without executing a formal occupancy agreement. These agreements spell out the terms and conditions of the seller’s occupancy and protect buyers as well as the sellers.

In California, real estate agents have at our disposal a handy form called the Purchase Agreement Addendum (PPA), which among other contract terms, addresses seller rent backs. When the appropriate box is checked, this addendum modifies the purchase contract.

The PPA handles short-term seller rent backs that are less than 30 days and contains the following elements:

 

• Term of the rental period
• Amount of rent per day
• Amount of security deposit
• Whether the security deposit will be held in escrow or released to the buyer at closing
• Late charges, if any, pertaining to non-sufficient funds and / or payments that are received late outside of escrow
• Who pays for which utilities
• Right of buyer to enter property
• Seller’s duties to maintain the property
• Lease assignment and subletting rights
• Seller’s obligations upon surrender
• Insurance for seller’s personal items
• Miscellaneous conditions

 

Insurance Coverage for rent backs

Sometimes, buyers will insist that sellers maintain their existing homeowner insurance policy during the rent back period. While insurance companies are not happy to keep insurance coverage in affect, many will continue the policy upon request.

However, there are several problems associated with this. The seller no longer owns the home, so in the event of a claim, the seller’s insurance company may refuse to pay the claim. Moreover, the buyer has insurance coverage because lenders insist that a buyer’s insurance policy be in force at closing.

Some insurance companies have argued that if a claim were to occur and the seller submitted a claim to the seller’s company, even if the seller’s company paid it, the seller’s company might look to the buyer’s insurance coverage for reimbursement.

In either case, the seller should carry coverage for the seller’s personal belongings and automobiles.

 

Determining rental amounts

The rent the seller pays is negotiable. Sometimes seller don’t want to pay any rent but ask to stay in the home for a few days rent-free. In that event, it is still wise to execute an agreement that addresses liability issues and term.

Because most buyers finance a new home, buyers are incurring interest and paying taxes and insurance for a home they do not occupy. It is reasonable, in most cases, to charge the seller an amount that is equal to a daily proration consisting of the buyer’s principal, interest, taxes and insurance.

If the buyer’s new mortgage payment includes impounds (taxes and insurance), it is fairly simple to divide the PITI payment by 30 days and charge the seller that prorata amount per day. For example, if the buyer’s new payment is $3,000 PITI, that would equal $100 per day.

For further protection — and to comply with local rent control laws or other state-specific laws governing landlords and tenants — buyers and sellers might want to consider signing a standard residential lease agreement. For more information, consult a real estate lawyer.

What is more complicated? Building a house or renovating with interior design ideas? If this is planned properly, you will be able to succeed in both. Aside from that, here are a few other things you will need to make sure everything goes smoothly.

First, you have to now what you want to happen to the attic? You should have an outline what this will be changed into. Do you want to make this into a extra bedroom, a playroom for the kids, a gym or an office? When you have figured that out, it will already be easy to get the right tools and equipment.

A renovation should not cost you an arm and a leg. To prevent this happening, another thing you have to think about is your budget. Naturally, homeowners who are able to do it themselves will be able to save hundreds of dollars. If you are stumped by a small problem, try looking for information about this online or on television since there are shows that can teach you a thing or two so you can carry on with your work.

But if you are inexperienced and you want this done right, it is best to hire a professional. Just remember that hiring someone who does this for living will cost money.

You can try and save some dollars by canvassing around and calling up different contractors. Is the most inexpensive contractor the answer? No because if they are just starting out, you are not sure if they can do a good job or not.

So, you don’t make the mistake of hiring the wrong contractor. Your decision on who to get should not be based on how much they are quoting but rather on their experience in this line of work.

You should call up their previous customers and ask questions. If you are satisfied with your background check, then you can consider them as someone you can hire for the renovation.

But going back to the issue of your budget, if the contractor is asking a certain price and it has exceeded your budget, the best thing for you to do will be to find ways to save money. You can do so by installing cheaper but still durable appliances, recycle some of furniture in the room by repainting it so they look once again or have the work done in phases. This may take longer than what you anticipated but at least you are working within your limits.

If you stick to the plan and your budget, you will be able to complete the renovation of your attic. It’s unfortunate that those who do not plan ahead of time, hire the wrong contractor, spend wisely, end up with a project that’s incomplete.

Surely, you don’t want to happen to your attic or any room in your house. So, before you do anything, think about what you want to turn the attic into and get ideas from homemaker interior design magazines or online. Some people follow exactly what they see while others make some slight modifications.

When it comes down to attic renovations, there is no right or wrong answers. The important thing is that it you are happy as it shows your personality so forget what other people say and just go for it.

Your budget is the most important thing to consider before you start to design your own house. Although this seems obvious, it is very easy to get carried away with your new house design plans. It is fun to put designs down on paper, but if you keep adding and adding to your design plan you will end up with something that is not realistic.

Designing your own house is difficult because of all the decisions that need to be made. It is like starting with a blank canvas and drawing a picture. It is a great idea to ask all members of the family what they would like. It will, afterall, be everyone’s house and everyone is going to have to live in it. The more input you get, the more likely everyone will be happy with the end design. Try to narrow down the house design ideas to ones that are the most practical and affordable.

A great place to start for ideas is with a design book you can get in most any bookstore. This will give you some great starting points and ideas to work with. Once you have an idea of what you might want, you can use one of the many convenient online tools that are available. Most of them can be used for free or for very reasonable rates. You will be able to design your house in 3D and play around with all sorts of options.

Once you have a plan down on paper (or on your computer), you can take your design to a professional who will be able to make some changes. He will be able to make suggestions and to modify your house so that it will be structurally sound. Make sure you take advantage of this professional’s expertise and ask any questions you might have. Now is the time to find out if that sunken den or bonus room is something that is practical.

Moving houses, building houses, and designing houses are all some of the most stressful things you will ever do in life. It is important to go slow and try to not make rushed decisions. Designing your own house is something that you will most likely have to live with for the rest of your life so it is crucial you think it through carefully. Involve everyone and go slowly for a happy home in the future.

If you are thinking of switching to radiant heat in your home, you might be wondering how much it will cost. That depends on what type of radiant heat you install and in how many rooms you install it. Generally though, electric radiant heat is cheaper than hydronic. But just how much cheaper?

If you install electric radiant heat floors in your bathroom or kitchen it will probably cost somewhere between $500 and $900. The same thing may cost over $4,000 for a hydronic system. By comparison, forced air heating would cost about $200 per room which is why almost all new homes are being built with forced air. It is very rare that you will find any new home being built by a builder with radiant heat.

Why is hydronic radient heat so much more expensive than electric heat? The first reason is that you have to install a boiler or some other means of heating the water. Additionally, you have to get the pipes under the floor(s) and they usually need to be embedded in concrete. A complete hydronic radiant heat system in a medium sized house can cost anywhere from $10,000 to $20,000 which is quite expensive and out of financial reach of many people.

If you are just building your new home, that is the best time to install hydronic radiant heat. Doing it later makes it much too expensive and makes electric radiant heat the better choice. If you are buying a home in a development and want hydronic heat, ask the builder as soon as possible whether this is something they can install. Hydronic heat is the preferred heat of most people because it is better on your skin and it is silent. If you do have the chance to have it put into your new home, it will most certainly increase the value of your house whenever you decide to sell it.

If you are thinking of electric radiant heat, it’s advantage is that it is relatively easy to install in individual rooms such as the bathroom and kitchen. Pads with electric circuits are put in under the floors and there are no moving parts like a hydronic system.

Electric radiant heat is the simpler choice for most people and the cheaper of the two kinds of heat. Most people who install electric radiant heat in an existing house do it only in a few selected rooms such as the bathroom. This is because the bathroom is the first room you go to when you wake up and having a warm bathroom floor is very nice.

Having a new swimming pool is definitely great, and makes a good addition to a home. If you decide to choose an indoor heated swimming pool or a fantastic outdoor pool complete with diving board, natural landscape, slides or other water features, the addition of swimming pool will provide you and your family with hours of fun and enjoyment, exercise, relaxation and entertainment in the comfort of your own home. The choice of whether to build an indoor heated swimming pool as part of the house or have an outdoor pool in your backyard, depends on a variety of factors. These factors include things such as your budget, lifestyle, the climate and many other factors.

How Will You Use Your Pool?

If you live in an area where the weather can stay warm well into the middle of autumn, an outdoor swimming pool may be the best choice. You’ll get five to seven months of enjoyment from your pool, and you won’t have to worry about the expense and maintenance concerns that go along with the installation of an indoor heated swimming pool. However, if you live in one of the cooler regions of the country, an indoor heated swimming pool can prove well worth the extra expense. It can offer you a place to unwind or engage in vigorous, low-impact exercise, even if there’s a foot or two of snow on the ground! Also, an indoor heated swimming pool can make a lot of sense for persons who, because of health reasons or age, may desire an increased measure of security or privacy in connection with a daily exercise or therapeutic regimen.

Some Considerations For Indoor Heated Swimming Pools

If you are considering the addition of an indoor heated swimming pool to your home, you will want to be aware, not only of the costs associated with installing the actual pool and its associated equipment, but also the expense necessary to insure the long term structural soundness and hygienic characteristics of your enclosure. Gathering and holding a large volume of water in an enclosed space guarantees elevated humidity levels, so you’ll want to be sure you know about and understand the various options for dehumidification of your indoor heated swimming pool space. Too much humidity leads to mold, mildew, and rot. Also, the diffusion of evaporated chlorine into the humidified air can create not only health problems, but degradation of structural materials, as well. So, make sure an adequate climate control system is part of your plan for your indoor heated swimming pool.