Home Sale Guarantees have been around for years. Most people don’t know about them, because they are not real common, or popular, for good reason. However, they do exist in the Burleson, Ft. Worth, Granbury, Weatherford areas (unfortunately).
Home sale guarantees can vary, but they usually sound something like this:
Guaranteed to sell your home in x number of days!
Guaranteed to sale your home in x number of days or I will cut my commission!
Guaranteed to sale your home in x number of days or I will buy it!
Just do a Google search for some examples of this highly questionable tactic.
The Truth About Home Sale Guarantees
All that sounds pretty good, until you hear the details. (Isn’t there some saying about the devil being in the details?) Here is how these “guarantees” usually work. There are typically several conditions that the Realtor sets forth on these “guaranteed” sales.
- The first is that you agree to price your home according to the price HE or SHE sets! You don’t think the Realtor is going to encourage you to try to get all you can for your home do you? (Hint: Not a chance!) They are not going to take on any risk here, so beware!
- Then comes the agreement that if your home is not sold in 7, 10, 15, or 30 days, you reduce the home’s price by x percent at various time intervals. This ensures that he or she gets your home’s price down to the “bargain” category so that someone probably will buy it, but you won’t be happy with the price. Guaranteed!
- There are also the mandatory fix ups, changes, and repairs that must be done. This list can be long, and it usually is because the Realtor’s commission is at stake. He wants to make it so difficult that you would never agree to his conditions. That way, he doesn’t have to actually guarantee anything.
- Then, if the guarantee was to buy the home, the Realtor will usually only buy it at a certain percentage of the already significantly reduced asking price, so that he can flip it and make money on it.
The Real Issue
With all these conditions, you can probably imagine that not many people take the Realtor up on his “guarantee” offer. And you would be correct. Why then would he make the offer? Because the Realtor wants you to call him or her to talk about listing your home, so he can get inside your house. Every Realtor knows that is the first step to getting a listing. Once there, he will explain the stipulations, and you will recognize that it is a terrible deal for you. But he got what he wanted. He got inside your home and a chance to talk with you about listing your house, probably at the inflated rate that most Realtors charge. Some guarantee, right?
In all my years of real estate, I have never seen one legitimate home sale guarantee that was actually a good deal for the seller. Don’t be fooled by home sale guarantees, or other such scams. Find an honest full service Realtor who does a great job at a great price that saves you money! Call if you would like to talk with such a Realtor!