Home Selling Guarantee, Fact or Fiction
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Dear Phyllis,
I have a rental property in Sunland 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. Is this home-selling guarantee a fact or fiction – what advice do you have for me? Perry
Dear Perry,
I know some Realtors make this claim, but I have never heard of any of them actually buying anyone’s home. 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:
- First, ask what price they will pay for your home and how they determine that price.
- Next, confirm whether they have the cash to complete the purchase or whether they will obtain a mortgage, and verify how long financing will take and whether they qualify.
- Then, review their track record. Ask how many homes they have failed to sell and how many they have purchased. If they purchased homes, check whether they later resold them for a profit. Verify this information through their broker, the Board of Realtors, or another reliable source.
- Finally, identify any restrictions attached to the offer.
Now you should be able to determine if the home selling guarantee is your best option. Best of luck.
