Sellers: Beware of this sales tactic “I’ll sell your home or buy it myself” – Time to say it folks

I first started hearing this ad from a local Realtor maybe 1-2 years ago (longer?) and I’ve heard it catching on recently with other agents promising the same. Here’s the truth of the matter folks, any Realtor can make this “guarantee” even if that Realtor is dead broke, bankrupt, going through foreclosure themselves and can’t even afford to put gas in their car, let alone finance anything. They can still make that “guarantee” to a seller and here’s why:

That “guarantee” requires the Realtor to agree to the list price of the home; if they don’t agree with the list price the seller wants, they will still list the home but they will not offer that guarantee.

When I started writing this blog entry I began getting into reasons Realtors will take over-priced listings and realized, that’s another subject and so another blog entry which I’ll post next. Sticking with this particular subject, lets say you have a home where the market comparables show it should sell for around $419,000 (which said Realtor may not show you, they may show you comparables that show a lower value…these comparables can be geared to a specific purpose). The Realtor will not agree to provide that guarantee at a list price of $419,000 (and certainly not above), what they will agree to for the guarantee is $399,000…or maybe $419,000 with a pre-agreed upon price reduction schedule down to $399,000 within say 2-6 weeks. This way, they know the home will sell and they will never have to be faced with having to buy the home, not because they are amazing agents, but because they are selling it for less than it’s worth and getting the sellers buy in on this price by offering a “guarantee” that other Realtors do not offer (giving sellers a false impression of competency).

At first glance the guarantee sounds good, sounds like the agent is so confident in their abilities to get a home sold [for top dollar] that they put their own money where their mouth is; until you get into the details of the guarantee.

What I would recommend is really look over the comparables a Realtor offering this guarantee is presenting to you, then get a second opinion, and a third opinion (heck, call me!). I think you will find in most cases the Realtor offering the guarantee is attempting to sell you on a list price under market value.

My two cents

~Scott McDonald



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