What is the purpose of...
“WE'LL SELL YOUR HOUSE, OR WE'LL BUY IT FOR CASH!” ad campaigns?
This is a pretty attractive idea when you're considering selling your home and sometimes it can work well for you. I mean, everyone would like a guarantee that their home will be sold when they list!
For example, you have put in an offer subject to the sale of your home, you need to sell it quickly and you're okay with getting less than market price.
This “Buy Your Home When Not Sold” idea is not illegal (neither are “Payday Loans”) but it is a method that a REALTOR® can use to get in front of you to give you the opportunity to list with her/him. Generally, they admit that they buy very few - if any, but they feel it’s needed to get new listings. They “hook” the clients interest, the client doesn’t like the conditions of the “buy your home deal” and ends up listing without that special agreement.
Listing and selling your home is an involved process that your REALTOR® will walk you through in a way that best protects your interests. Be aware though, this idea will complicate the process further.
Here are some things to consider before signing up for this program.
- To arrive at a fair market value, you should hire a qualified appraiser who is familiar with your area. What the REALTOR® will offer to buy yours for could be significantly less than market value. Think of it like wholesale/retail.
- Unless you negotiate differently you will still have to pay the full commission when he/she buys your home.
- Sometimes he/she will require you to commit to use them as your agent when you buy your next home. (Another guaranteed commission)
- They might require you to purchase a more expensive home as part of the deal. Check what threshold they have set for this purpose.
Make sure that you get it all in writing and that you understand what’s involved. We strongly recommend you run any agreement by your lawyer - just to make sure.
Your REALTOR® will protect you as best he can. Just be sure that you are clear about what you are signing.
Still not sure? Call Jim, it’s just simpler.