by Phil Hoover, Real Estate Broker

“If I Don’t Sell Your Home, I’ll Buy It!”

Ever seen that offer from a listing agent?

It’s called a “guaranteed sale program”.

Sounds too good to be true, doesn’t it?

I have long been skeptical of guaranteed sale offers for a variety of reasons, including the following:

Price

How much will the listing agent pay you for your home ~ appraised value, assessor’s value, a discounted value?

If it’s a discounted value, precisely what percentage of value will the agent pay you for your home ~ 75%, 85%, 95%, or what?

And, who will determine the actual fair market value before applying the discount?

One thing you can count on is that it will not be your asking price!

Ability To Perform

Does the listing agent have cash available to purchase your home?

Does the listing agent have a credit line with funds available to purchase your home?

Does the listing agent need to get a loan to purchase your home?

If the listing agent must get a loan to buy your home, can the agent qualify and how long will it take?

Timing

When will the listing agent buy your home?

Today, 30 days, 90 days, six months?

Listing agents who offer a guaranteed sale program don’t want to buy your home; they want to get your listing so they can sell it to a real buyer and earn a commission.

The usual outcome with a guaranteed sale program is that the seller usually ends up accepting a reasonable offer from a real buyer to avoid using the guaranteed sale offer at a discounted value.

Remember what grandma said ~ “if it sounds too good to be true, then it probably is!”

Want a better alternative?

List your home with an experienced, plainspoken agent who will tell you the truth and sell your home without trickery and false promises.

I know where you can find one! :)

 

January 30th, 2013 Posted in Inside Real Estate Print This Post Print This Post

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