What are these Guaranteed Sale Programs I have heard about? I had a friend list with an agent and he had her sign up for this.

Asked by tramsblondes, Austin, TX Wed Jun 6, 2012

Are they backed by an insurance company? How does the program work? Is that a frequent thing in today's market?

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10
Jeffrey Schn…, Agent, Austin, TX
Wed Jun 6, 2012
Hi Tramsblondes (great name),

This would be called the "promise the agent hopes they never have to live up to" program, taught in the school of "I wanna be an agent and offer anything I can just to get people to list their homes with me" school. There are so many holes in the terms and conditions that the paper it's written on isn't even good to use as screening material. Can I be more blunt than this?

My recommendation to customers is to use an agent who has a reputation of knowing how to sell homes such that they don't have to offer a guarantee that really isn't one? Sad to think this kind of thing goes on, but it does.

Regards,

Jeffrey
512-913-7480

P.S. If you want me to blow holes in the contract, send me a copy, it should be fun!
2 votes
Bill Gassett, Agent, Hopkinton, MA
Fri Sep 4, 2015
The guaranteed home sale program is one of the biggest gimmicks in real estate sales. The program is run by agents who's purposes is to get their phone to ring. Every loves to hear things that are too good to be true. The problem with that as we all know is they rarely ever work out the way we hope they will.

You need to understand this one premise. An agent is not going to be buying your home for top dollar. Why would they? This is a cheesy ploy that gives our industry a bad rap. In the web reference below you will see a comprehensive explanation of this kind of program.
1 vote
Ron Thomas, Agent, Fresno, CA
Wed Jun 6, 2012
Jeffrey;
next time, please don't sugar-coat it!

Okay?
1 vote
Bill Downie, Other Pro, Augusta, GA
Sun Nov 13, 2016
Guaranteed Sale Programs can be lifesavers for sellers that MUST sell their homes by a certain date. The programs do involve aggressive pricing to motivate buyers to choose their property over other similar properties. Each real estate agent has their own qualification rules and conditions. If a seller is not in a hurry to sell they wouldn't need the benefits of a Guaranteed Sale Program. If time is of the essence the Guaranteed Sale Program may be a better option than defaulting on a mortgage.
0 votes
Susie Kay, Agent, Dallas, TX
Wed Jan 6, 2016
There's no such thing as a guarantee sale. I guess I should re-phrase it, a sale can be guaranteed if it's cheap and yet the item is in good shape. For example, a home that has a market value of $250k and is in good condition is listed at $200k. Well, this for sure will attract attention from everyone! My question to you is, do you like this idea?
0 votes
Josh Painter, Agent, Temecula, CA
Tue Jan 5, 2016
0 votes
Jim Morelli, Agent, Austin, TX
Wed May 13, 2015
Most of work by adding a clause to the listing agreement that states they broker will purchase the property at a specified price if it doesn't sell in a certain time period. The guaranteed purchase price is usually well below market so they are covered in the event they need to preform. It is kind of a lost leader in strong sellers market like Austin is right now. One broker I have seen in Austin who advertises it a lot also charges an above market fee. If it sounds too goo to be true it usually is. Hope that helps.
0 votes
JOSEPH E JAR…, Agent, Austin, TX
Thu Jun 7, 2012
Remember the old addage...If it sounds too good to be true, it usually is!!! Joe
0 votes
JOSEPH E JAR…, Agent, Austin, TX
Thu Jun 7, 2012
As you heard from the previous answers, this is a program by which a Realtor tries to get your listing and if it does not sell, they "guarantee" to purchase it at a very low price, usually about $.60-.70 on the dollar!! It is not really practical... it is more of a gimmick than anything.
If you do not have your house listed yet, I am a Residential Specialist and have an excellent track record of selling homes for what they're actually worth in a shorter than average amount of time. I use a very extensive marketing program, over 20 years of sales experience, and no gimmicks or questionable methods.
Feel free to click on my photo, review my Credentials and Client Testimonials, and contact me ASAP if you have not yet signed up with another Realtor. Thanks, Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, 512-261-4415
0 votes
Kathleen Ver…, Agent, Austin, TX
Wed Jun 6, 2012
Hello,

Guaranteed sales programs are guaranteeing that your house will sell at a certain price during a certain time frame. If it doesn't, the Broker offering this program will buy your home for much less than it's worth. I would ask myself how much of my profit I am willing to give up to participate in this type of program. If you're in a huge hurry and are not in need of all your equity, it may work for you. I don't see this type of program a lot, although it is certainly out there.

I believe it is much more important to find a competent, experienced Realtor who will do what it takes to get YOU the most money for your home. Pick your Realtor first, then decide on price.

Good luck,

Kathleen Bauerle Vernon
Third Generation Austin Realtor
512-567-9909
Jackson Properties
kvernon@austin.rr.com
0 votes
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