THE GUARANTEED SALE PROGRAM-THE REAL STORY!

Written by Posted On Tuesday, 05 February 2019 10:56

Are you thinking about selling your house and using an agency that offers the Guaranteed Sale Program?

guaranteed sale program

There are a lot of real estate sales gimmicks out there and this is probably the biggest one!

In this article, we break down how the guaranteed sale program works and why you should be aware. 

Guaranteed Sale Program Ads

Here is the typical ad for this program that you hear on TV or Radio:

“Hey everyone if you list your house with “Joes Realty Team” and it doesn’t sell, he will buy it, Guaranteed!

Or “Hey everyone, If you list with Joes Realty Team and it doesn’t sell, he will sell it for free!

Have you heard one of these ads? They are run all over the country.

How The Real Estate Industry Works

Let me tell you a little bit about the real estate industry. The running joke in the industry is that if you want to get rich, sell things to Realtors!

Realtors buy programs and sales ideas all of the time. Every agent is looking for the next big idea to get more listings or attract new buyers. Because I am listed as a Realtor in different directories, I probably get 5-10 emails a day from people trying to sell me different gimmicks.

This is where the guaranteed sale program was born, someone came up with this idea and decided to sell the program to any agent who is trying to generate more listings.

I personally feel that this program is a bait and switch scheme that should not be allowed to exist.

There are a lot of things that happen in the real estate industry that shouldn’t happen, but that is another article in itself!

Is it really Guaranteed?

I did a little research and I came up with an actual Guaranteed Sale Program contract from a Keller Williams team in Florida.

It is a one-page contract that you must sign for the guarantee!

The contract starts out with this:

While every agent will promise to sell your home, the reality of the real estate market today is that this simply doesn’t always happen. Needless to say, this is highly frustrating to a home seller like you. Well, we set ourselves apart from most agents by being accountable to you. In other words, we don’t just promise to sell your home, we GUARANTEE it!

Our Sell Your Home in 60 Days campaign is as simple as this: We guarantee to sell your home within 60 days or we will sell it for free. If your home sits on the market for longer than 60 days from the time we list it, we will continue to market it aggressively but charge you zero commission as the listing agent.

As you can see, we put our money where our mouth is. Instead of making you empty promises, we give you a written guarantee of performance and if we don’t live up to this agreement, you pay us absolutely nothing at all. We’re taking ALL the risk so you don’t have to, and this gives our many clients much greater peace of mind in the home selling process.

So there you have it, THEY take all of the risks! What a deal, why would you ever list with someone else?? This is the best deal ever, my home WILL be sold in 60 days or it’s free! Oh wait, there seems to be some fine print!

The Fine Print

Let’s take a look at that fine print.

They have the terms and conditions numbered but they forgot the word “catch” in front of the numbers! Don’t worry, I won’t leave that out.

Catch #1- Fair Market price to be agreed upon by the agent and the seller.

I’m pretty sure that this agent isn’t going to agree to the highest price that you could get for the house. They will definitely list it at the lower end of the market.

Catch #2- Seller will agree to stage the property if the agent requests it.

This could be a very expensive request depending on the size of your house and if it is vacant or not. Staging can cost upwards of $10,000 on an average sized house.

Catch #3- Seller agrees to paint property or make necessary improvements if requested by the agent.

How much would painting your house cost? And what about necessary improvements? What improvements might the agent think are necessary? A new roof? New landscaping? New windows?? I could go on and on!

Catch #4- Seller agrees to lower the list price if there have been 10 showings without an offer or if you have gone 3 weeks without 10 showings.

Remember, the list price is already low, so if you don’t get many showings wouldn’t that be because the agent isn’t doing their job with marketing?

Catch #5- Seller understands that if you receive any offer, the agent has done their job.

Even if you don’t accept the offer, the agent has done their job and they won’t be selling your house for free. So when they bring you that offer of $100K for your $250K house, they have done their job! I’m pretty sure they could find a ton of people to make that offer!

The Very Fine Print

Catch #6- This contract is void should the seller not agree to these terms or not execute on any of these terms.

So after all of that, if the house still has not sold in 60 days, you get it sold for free! Who is it again that is taking all of the risks? A monkey could sell your house if you agreed to all of these terms!

So there you go, that is the behind the scenes look at the guaranteed sale program. As you can tell, this is nothing that you should get sucked into, there are no guarantees here! Like I said earlier, I’m not really sure why this type of advertising is allowed in this industry. This program does nothing to help the consumer, it only helps the agent that is offering it, get more people in the door. Until the real estate industry gets rid of this and other problems, it will continue to have a negative reputation.

If you have any questions about selling your home, please contact us, we would be happy to help! If you would like to visit our website, we are at: https://montanaliferealty.com 

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