Let’s say you want to purchase a house, but in order to do that, you need to sell your own house first. In a hot real estate market, having to make a “contingent offer” can put you at a competitive disadvantage. What else can you do?
Most homeowners are not in a financial position to buy a house without first selling the house they currently have. On top of that, the timing has to be just right for you to sell one and buy one at almost the same time. You don’t want to get stuck selling your home before you have somewhere else to move.
A rent-back agreement might be what you need. If the buyer is not in a rush to move in, and agrees to rent the home back to you for a period of time, it can benefit both parties. It gives you, the seller, time and money to find and close on your new home. And it gives the buyer some rental income that they could use to offset some of their closing costs.
If you want to do some more homework about this option, here’s a good article to read: https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement/