Selling my home to a buyer who will let me enjoy living in it for one more year....

S

Suzanneinreno

New Member
Location
Reno
Hi Everyone
i am new on the forum and am looking for someone who is experiencing the same dilemna : after 20 joyful years in my home, I am thinking about moving to a senior community in about a year or two.
i am facing financial issues and am afraid I will have to sell my home before then. I do not have any children or family to help.
My house is mortgage free and I do not wish to use a reverse mortgage. I would like to find a buyer who would let me enjoy my home until I leave in exchange of a discount sale.
I talked to my real estate agent who is doubtful that such a buyer exists....
Perhaps I am a dreamer.... Has anyone heard of this type of transaction?
Thank you
Suzanne
 

Yes, this does happen sometimes, but it can blow up in the face of the buyer. Many times, at the end of the agreed-upon period of occupancy, the seller either can't or won't move out and the new owner has to resort to evicting him/her, which can take a long time. Most real estate agents won't recommend this kind of deal. You might get lucky, though, and find the right buyer. It doesn't hurt to ask. Usually, the buyer wants a month-to-month rental deal with the seller and not a "discount" on the selling price. Would you be willing to rent from the new owner for a year or two? You might be more likely to find that sort of deal, especially from someone who is buying the property for investment and would be renting it out to someone anyway.

There has been a discussion going on about this on another board I frequent and it hasn't been pretty.
 
My Dad sold his house to one of those " flipper" guys. Fortunately he had his new living situation mapped out the next town over. But it can get real ugly out there, be careful.
 

I'd be doubtful you could find such a deal. Perhaps you'd be better off to stay in your home -- those retirement communities are not cheap, to say the least. Have you checked to see if you can really afford to move in to one of those? The ones around here are expensive and have fairly steep monthly fees.
 
Dear Suzanne,
I was born in France but have been living in the United States for most of my life. I would like to speak about this type of transaction relating to this issue that is called a Viager : born in Europe in the 18th century, this is a real estate agreement where property is sold on a reverse annuity basis. For example a person would sell their property to a purchaser in exchange for a down payment and regular cash installments for the rest of their life (while continuing to live in the house). The only catch is that when the person dies the property is surrendered to the purchaser.

The advantage of a viager agreement is it allows elderly people to benefit from the sale of their homes while retaining its use. The downside is that if the person dies one week after entering the arrangement, then the buyer gets the property for a fraction of the cost.

The seller is the one initiating the transaction by registering her/his property for sale in a real estate agency specialized in Viager. She/he has to be proved healthy and sound of mind before entering the contract.

The viager is part of the Civil Code and tightly supervised by the law : for instance, in case of default by the buyer, the transaction is cancelled and the seller gets to keep the title and money already paid .

This practice is used more and more by younger retirees who need more money not only to pay bills and mortgage but also to enjoy life (travel etc..). Buyers are working professionals who wish to buy their future house without making a mortgage, or real estate investors hoping to make a good deal.

The buyer has to pay for property taxes and big repairs (roof etc...)

Facing high medical costs and senior housing rates, America might be ready for this type of transaction, although it can sound shocking at first.
It is an intergenerational agreement that could help everyone.
I know you are thinking LAWSUITS from heirs !!! So perhaps this could work for persons like you Suzanne who have no children. Heirs also have to take in consideration that their parents financial independence is a good thing ... I hope everyone enjoy this note
Thanks for reading and have a good day!
Bonne chance Suzanne , I hope you can find the right buyer with a big heart:):love_heart:


 
Welcome, Suzanneinreno. I know an older couple who did just what you want to do. In their case they wanted to sell their home (which I don't think was paid off) for a long term rental situation for themselves. I'm not sure of all the reasons, possibly medical bill debt needing to be paid. They put an ad in a local paper for under Investment Opportunities. They said they had only two calls; the first made a really low offer, so they turned it down. The second caller was one they worked out a deal with. According to them it was pretty simple and they did it just like a normal house sale, closing at a Title Company. They had a rental agreement written up to sign at the same time.

I think they've been happily living under that arrangement for something like 10-12 years now.

Anything is possible, suzanneinreno. Just have someone knowledgeable to help you with the details. Best of luck.
 
Thank you Jnos and for everyone support.
Since I last posted, there was some new development in my situation. My neighbor's nephew has made an offer to buy my home , 10% down and monthly payments until I pass. I had to get an estate lawyer who is studying his proposition in order for me to get a fair price value minus occupation rate according to the life expectancy table. If that goes through, the thought of being able to stay in my home until the end and getting income every month is a GREAT relief. If I have to move to a facility, the monthly payments will go up 30% and he can take possession of the home at this time.
I do not have any children and what happen to my house after my death is not very important after all, I'd rather enjoy my life now!
 

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