You’ve seen the signs: I’ll sell your home in 60 days, or I’ll buy it. I want to take a minute and share with you how those programs work, and what you should be aware of when considering this type of program.
Personally, I don’t have a guaranteed sale program. I can’t offer something in good conscience that, in my opinion, is a bait and switch marketing tactic. I have nothing against the Realtors that use these programs, and a lot of the most successful agents in this country have some form of this program in their business plan.
However, if you were to talk with several of these agents, very few end up having to buy the home from their client. Even fewer of the clients choose to list their home under these programs. That’s partly due to what’s in the fine print. There are several criteria that the seller must agree and comply with in order to make these programs work.
Some of these programs include an agreed upon list price, which is solely based on recently sold properties and not current market conditions. Other programs include a pre-agreed upon price reduction every 7 days, and that can be a significant amount. Still more programs include an upfront marketing fee of $1,500 to $2,500 and pay for staging and any other things the Realtor recommends.
“If this program seems too good to be true, it probably is.”
In addition, the pre-agreed upon price that the agent would pay for the home is usually well below market value and includes the same seller commissions and fees as a regular transaction.
The reality is that these types of programs might work for a small percentage of people, but ultimately, guaranteed sale programs are a marketing tool to get the agent’s phone to ring, and it often works. I’ve talked to several who use these programs, and they all say that it’s a huge lead generation system for them.
Bottom line, if it seems too good to be true, it probably is. If you’re a motivated seller and you’re willing to do what your agent recommends, price your home aggressively based on the current market conditions, and combine that with a fantastic marketing plan, then your home should sell.
If you have any questions, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you!