Yes, there is some truth to the advertising of real estate agents that say "I guarantee to sell your house or I will buy it". The problem arises in the small print or the full explanation of what the real estate agent will really buy your home for. So yes it is true that they will buy your home if you are willing to sell it at their price. Let explain more about this advertising gimmick that real estate agents across the country are using to get into seller's homes. First of all there are several different variations of this sales tactic or gimmick. Some real estate agent will guarantee to buy it, or sell your home for free if it doesn’t sell in 60 days, or knock money off if they don’t sell it in a certain period. Let me tell you right up front 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. All right, let’s think about this advertising gimmick senseably. Why would a good Michigan realtor, lake real estate agent buy a home when they can’t sell it at a certain price? What sense does that make. Do you really think any Michigan real estate agent is going to buy your home at a price you decide on if they cannot sell it? OF COURSE NOT!!!!! The catch is that they want to set the price you list it at. The real estate agent wants a quick sale.
The real estate agent is not going to 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 that sells a house has to pay title insurance and transfer taxes in Michigan. Real estate agents are not given a free pass. They have to pay the same fees you do. That real estate agent now has to pay title insurance, and transfer taxes. IT’S A GIMMICK, A COME ON. Let’s say the lake realtor agreed to buy your home at $300,000. They are going to incur title insurance costs of $1399 and transfer taxes of $2580. So now the net on the property is only $296,021.
As a Metro Detroit real estate agent I don’t believe in gimmicks or come ons. I believe in dealing honestly with people. To explain how this so called “Guarantee to buy your home if I can’t sell it” works is simple.
When the gimmick real estate agent comes out to see you….you may have an idea or price of what you want out of your lakefront home. Most Metro Detroit home sellers do. The real estate agent is going to show you what has sold. Yes, they will agree to list your home at what you want. However, they are going to tell you a MUCH LOWER PRICE THEY WILL BUY IT AT. So if you don't sell it at their price and 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, a come on. 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.
Common sense tells you that they are not going to buy your home at an inflated price. They want to buy it at the lowest price possible!!!! They are going to have to re-sell that home at some point in the future. They can’t afford to buy homes and sit on them. They can’t afford to buy homes and lose money on them. It doesn’t matter whether it is a or a home you are moving to in Southeastern Michigan. It is a sales gimmick to list their 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? Come on now….I know you like your house, but 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 lake house go for a bargain?
I hope this explains how this little gimmick works. It’s really no different than the person that offers to sell you a warranty deed for $80 after you buy the house. The same warranty deed you get for free. 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 you have to understand it won’t be in your best financial interest to do it. What you should be looking for in an agent is not the low priced guarantee, but the agent that has a good marketing plan, a good work ethic, has experience, and that is honest.
If you have questions about buying or selling a lake home in the Metro Detroit area feel free to call me at (248) 310-6239 or email me at This email address is being protected from spambots. You need JavaScript enabled to view it. I help client buy and sell homes all over Metro Detroit, so whether it is a home in Oakland, Wayne, Livingston, or Washtenaw County or a lake house for sale in Oakland County and the other counties I can help you.
