Trade Secret: A Realtor says “WE'LL SELL YOUR HOUSE, OR WE'LL BUY IT FOR CASH!”
What's up with that?
Great idea... and it may work well for you. Wouldn't we all like a guarantee our home will be sold when we need it to?!
The “buy your home if we can't sell it” idea is absolutely illegal (but then, so are “Payday Loans”). This is a tool a Realtor can use to "hook" your interest and hopefully list with her/him. Most will admit they buy very few, if any. But they believe - and it's probably true, that it get's their foot in the door. Clients won't usually sign this kind of deal once they read the proverbial fine print. But the Realtors who use the hook believe it gives them a chance to sell you on their work and - in the end - hopefully you will list with them.
So what's in the fine print?
Listing and selling your home is an important, legal process around one of the biggest transactions most people will ever make. Your Realtor will work hard to ensure your rights and interests are protected. The agreement they will need to have you sign to "guarantee" the sale will complicate an already complicated process even further.
Think about this. You'll need to have a clear understanding of the fair market value of your home. When considering a deal like this, where the Realtor has a vested interest in establishing as low a price as he/she can, you should consider hiring a qualified appraiser who is familiar with your area. What the Realtor will offer you could be significantly less than market value. Think of it like wholesale/retail.
Unless you negotiate differently you will still have to pay their full commission when he/she buys your home.
The Realtor may require you to commit to using them as your agent when you buy your next home. (Yet 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.
As licensed real estate professionals with years of experience in buying and selling houses for our clients, the DQ Team constantly on top of the ever-changing Kamloops area real estate market.. Or CLICK HERE.
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