Stay Focused S2 Ep33: August Real Estate Word of the Month
This week, Erik and Randal discuss an often used real estate phrase: Use and Occupancy.
Erik: Welcome to Stay Focused, Focus Real Estate's weekly video series and this week we have our real estate word or words of the month.
Randal: The word of the month, is actually three.
Erik: It's a phrase.
Randal: It's a phrase. Use and occupancy. We hear it a lot in the business. What does that mean? What does that mean to you as a buyer? What does that mean to you as a seller?
Randal: So the use is the ability to use a property. That would be, let's just say you wanted to put your things, you're a buyer and wanted to move into your new home a day or two early so that you could close consecutively. So you would move in a day early, but you would just move your stuff in.
Erik: You have a place to put your things.
Randal: Yup, but you don't stay there that night.
Erik: That's a use agreement.
Randal: That's use. Occupancy, of course, is when you stay in the property. So you sleep the night and you spend time there and you start unpacking and that kind of stuff.
Erik: So that's a little bit about use and occupancy. It's important for you to know as a seller, that's something you can ask for, to help you transition and give you time to close on your property, get the cash, and still then move in later to your other house and not be homeless.
Randal: And I've said it a number of times, what I always kind of say about a use and occupancy for the seller, and what it means to the entire marketplace, is it really does help lubricate our market in a way that allows a seller to have a little extra time to find their next house. Because what we find is that a lot of sellers can't make their next purchase without the equity of their current home, so what this does is allows them to find a buyer, procure the buyer, close-
Erik: Close, have the cash-
Randal: Have their equity to make their next purchase. And that's how that's important.
Randal: So you may hear this term "use and occupancy" in a transaction. If you have any questions about it, feel free to drop us a line. Comment below or just send us a private message.
Erik: And if you have any other words or phrases in real estate that you wanna know more about, let us know. Drop a line below.
Randal: And don't forget to like us on Facebook-
Erik: And subscribe to our YouTube channel.
Randal: Until next time, Stay Tuned and Stay Focused.
Erik: Stay Tuned and Stay Focused.