The truth behind "I guarantee to sell your house or I will buy it"



You must have heard the agents ads which say "I guarantee to sell your house or I will buy it".  There is some truth in this statement, but the problem is in fineprint, or the full explanation of what the real estate agent will pay for your home. It is true that they will buy your home, IF you are willing to sell it at their asking price.
       Let me explain a little bit more about this gimmick, that the agents are using to trick the sellers, and get into their homes, and get the listings agreements signed. 
There are variations of this sales tactic.  Some real estate agent will guarantee to sell it, or buy your home if it doesn't sell in a specified time period, or knock money off if they don’t sell it in a certain period.  Let me tell you the truth,  IT IS A SALES GIMMICK, and it comes with a catch.  As they say if it seems to be to good to be true, it probably is. Let’s think about this advertising phrase.  Why would a good Real Estate Agent buy a home, when they can't sell it at a certain price point? Do you seriously think that they would buy a home from you at the price you want it to be sold? What good will it do them? OF COURSE NOT!!!!!  The catch is that they want to set the price , which will cause a quick sale.  
The real estate agents don't lose money, its bad business, if they lose money.  Remember if they buy it they are going to incur more costs of selling the home.  Selling a home is never free.  Everybody, whether Real Estate agent or not, that sells a house has to pay transfer taxes, grantors taxes, and other taxes, when they sell here in Virginia. So they cannot sell it for free.  Your net comes down after the sale of the property when you sell the house. If the Realtor is going to buy it for , lets say $400,000, you will have to pay transfer fee etc, which will amount to at least $6,000, and the your net amount will come down by this amount.
When any agent comes out to see your home, and he says, "Well I guarantee that I will sell it or buy the home myself if I don't sell it" He knows what the homes are selling for in the area, they will show what is active and what has sold in the area, and they will tell you a higher price to list it at, However, they are going to tell you a MUCH LOWER PRICE THEY WILL BUY IT AT. So if you want to take advantage of their guarantee, you will be selling it at a lower price.  You will be selling at a price the agent has set.  It’s a gimmick.  So if you cannot sell your home at the higher price then they will buy your home at the much, much lower price that the realtor guarantees to buy it at.
They want to buy it at a lowest price possible, they also have investors lined up, who will make some improvements in the house and flip it.
Its just common sense, they can't keep on buying homes and just keep them, they have to sell them at some point, and if they cant make a profit, why would they buy your home? They cannot afford to loose money. It is a sales gimmick, so that you list your home with them.
Why would a real estate agent buy your home or property at a fair price when they have thousands of other homes to chose from?  A real estate agent or real estate investor is looking for the bargain, the steal that they can make big money on.  Are you the seller that is going to let their house go for a discount?
I hope I was able to explain how this works. They are just exploiting the consumer.
If it sounds too good to be true, it is not what you should go after.   That is how the guarantee to buy your home works.  It sounds good, but its not in your best interest. Look  for an agent that has a good marketing plan, a good work ethic, has experience, and that is honest.

I believe in honesty and truthfulness with people. 

If you have questions about buying or selling  home in the Virginia feel free to call me at 540-729-3470, or email me at aszia09@gmail.com.   I help client buy and sell homes all over Northern VA so whether it is a home in Prince Williams, Loudon, Fairfax, Arlington, Alexandria, Stafford, and the other counties in I can help you.

Asifa Zia
Licensed in VA, MRP
Member of NAR, VAR, PWAR
Pearson Smith Realty
43777 Central Station Dr #390, Ashburn, VA 20147

Cell:540-729-3470
Office:(571) 386-1075
Fax:571-386-1081

Find out what is your home worth Click Here

se habla espanol




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