Every morning on this Toronto talk radio station I hear this ad from a realtor – “Your home sold guaranteed… or he will buy it”. I’m sure you’ve seen ads on billboards with the same claim. What are these people trying to do? Give you a level of comfort to go ahead buy first or is it that they care about your financial well being ? The impression it creates is a that if your home does not sell as priced then the agent will buy it at market value. Absolutely, not true.
These guarantees always come with an asterisk – “Some conditions apply”. The conditions vary by the programs offered and here’s a sample of how to qualify:
1. The seller must buy one of the agent’s own listings
2. Seller must agree to paying for an appraisal and home inspection
3. The guarantee comes with a guarantee fee of 10% off the appraised value (or whatever it is).
4. Full commission is applicable in addition to the wholesale price.
5. Closing not less than 90 days, Not all properties qualify, etc.
Of course these agents don’t see anything wrong or illegal with the practice. After all, this is akin to trading in a used vehicle at the dealer’s wholesale price in exchange for a new one. Is this what you have in mind when selling your home?
I doubt that most people fall for this. Agents are not in the business of buying your home but the sexy headline and sound bite did generate that call to the agent. Whenever I hear this ad on the radio or see a billboard I’m quite frankly, disgusted by such deceptive claims.
Words that need an asterisk do not deserve your call.
If I meet one of these guys the only “guarantee” I have is to take a long shower.