Ask Phyllis is a blog series of frequently asked real estate questions. Have a question about real estate? Email us here
Home Selling Guarantee, Fact or Fiction
I have a rental property that is extremely run-down and because of the condition, I am afraid it will be tough to sell. I have seen Realtors® advertise that they will buy my house if they can’t sell it. I am wondering if this home selling guarantee might be my best option – what advice do you have for me?
I know some Realtors® make this claim, but I have never heard of any of them actually buying anyone’s home. In fact, I just sold a home for a client who had been listed with an agent who made this assertion but never offered to buy the home when he failed to sell it.
But, let’s look at this logically. Most homes are selling with multiple offers; fixers as well – even those that due to the condition can’t be financed and must be purchased with cash. I too have seen these claims advertised but usually with a caveat that certain restrictions will apply (make sure you understand what they are and that they are in writing).
On the surface this appears to be a very powerful claim. It’s difficult to fathom any real estate agent who would buy someone’s home, thinking they are going to lose money on the purchase. In today’s market, everything is selling quickly unless it is very poorly marketed or grossly overpriced.
Interview several real estate agents to determine what your home will sell for. Then with that knowledge you can ask the Realtor® making the sale guarantee:
1) At what price they will purchase your home? How is that price determined?
2) Do they have the cash to purchase your home or will they be obtaining a mortgage (are they qualified for a mortgage – how long will it take)?
3) How many homes have they failed to sell and how many have they purchased? Of the ones they purchased, did they resell them later and make a profit? (This information should be independently verified by their manager, Board of Realtors or a trustworthy source).
4) What are the restrictions to the offer?
Now you should be able to determine if this route is your best option, best of luck.