Selling a Home and Trying to lease the Home?
It’s a well known fact that in most markets it is a buyers market. With seasonally high number of listings on the market and a lower pool of buyers, this tilts the playing field to the buyers.
With that said, many homeowners that are trying to sell their home, also have their home listed for lease with either their agent or a property management company. Either way the seller wins because if they sell their home, they will relieve themselves of the note, or if they lease it, they will get the note covered.
But seller’s keep in mind one thing. When listing your house for lease with a property management company, often times they have the seller execute a power of attorney authorizing the property management company authority to sign and execute a lease on behalf of the seller.
On Monday morning, I found out that I was going to be receiving an offer on a house that I had for sale. That same house was listed for lease with a property management company. When I called the property management company on Monday morning to let them know we were receiving an offer, they mentioned that a deposit had been put down on the house over the weekend to lease it, but the lease had not been executed yet. By noon that same day, the property management company had executed the lease (on behalf of the seller’s) and hence bound the property to a 12 month lease. The seller’s probably would have wanted to first review the offer that was coming in before they decided which way to go, but since the power of attorney was in place, the property management company signed the documents, not allowing the seller a chance to review the offer. The property is now legal bound by a 12 month lease.
So just a thought that if you do what to advertise your property for sale and for lease, it might be best NOT to sign a power of attorney. That way the seller, not the property management company, will have the final say in the desision process.
The goal of this seller was ultimately met so that is fantastic! But what if the offer that was coming in was a full price offer? Then the seller could have decided if they wanted to walk away with a hand full of cash, or be an out-of-state landlord for the next 12 months. And normally, tenants never take as good of care of the home as the homeowner would, so if the seller wants to sell the property after the lease expires, it might take some substantial money to get the house back to sellable condition.
Kevin Rhodes with Keller Williams Realty ~ Dallas/Fort Worth