When you find the perfect home with storage space but someone throws a wrench in the deal
Most real estate professionals are risk averse. Those who are not should be.
Question: We are in a tight squeeze! We are selling our current home and buying a new one simultaneously. The down payment for the new house hinges on the sale of our current residence, leaving us with a narrow window between closings.
Here is the challenge: The new house has a perfect solution — a huge, vacant detached garage with an attached workshop. It is ideal for temporarily storing our belongings for three days, bridging the gap between closing on both houses.
Unfortunately, the seller’s agent is throwing a wrench in the plan. Despite the vacant property and short timeframe, they have denied our request to store things in the garage. We have secured a hotel room nearby and confirmed both closings are a “go” with no contingencies.
We understand the seller’s agent might have concerns, but why is this such a big deal? Is there any wiggle room to persuade them or are we stuck with pricey storage costs?
Answer: First, the seller’s agent works for a supervising sales manager or brokerage owner. Second, clients make decisions. Third, agents provide recommendations.
Most real estate professionals are risk averse. Those who are not should be.
A stellar real estate attorney in Silicon Valley speaks to “All the moving parts of a real estate transaction.” His colleague, a top real estate attorney, created a risk-management consulting firm for real estate brokerages in the San Francisco Bay Area. He uses the term “The hundreds of moving parts of a real estate transaction.”
Unbeknownst to you, your storage request adds dozens of “moving parts” to a transaction. Full stop. A homebuyer with any access to a property before the close of escrow is discouraged. In these situations, the “horror stories” are numerous. Unfortunately, the success stories are not shared.
However, you are in luck. The California Association of Realtors created a form for this purpose. It is called the Buyer Pre-Occupancy Storage Addendum (C.A.R. Form POSA). It addresses risk-management points concerning the parties on the other side of your transaction.
For instance:
Paragraph 1. License: Buyer is granted a license (“License”) to store Personal Property as defined below on the Property prior to the Close of Escrow.
Paragraph 10. Risk of Loss: The storage of the Buyer’s Personal Property on the Property shall not be deemed as Buyer taking possession or title under the Uniform Vendor and Purchaser Risk Act (Civil Code 1662).
The form ends with a warning in capital letters to all parties about this unusual scenario.
Ask your buyer’s agent for this form. Together, fill it out. Present it to the seller’s agent ASAP. It might work. If not, do not take it personally. The sellers and their representatives are making strategic moves. It is all business.
For Housing Market Data in your area, visit my webpage for trends here. Do you have questions about home buying or selling? Full-service Realtor Pat Kapowich is a Certified Trust and Probate Specialist, Certified Real Estate Brokerage Manager and career-long consumer protection advocate.
He is based in his hometown of Sunnyvale, California.
Office: 408-245-7700; Broker# 00979413 Pat@SiliconValleyBroker.com