Real estate agents who offer guaranteed sale programs, where they promise to sell a house in a certain time frame or buy it themselves, may be offering lower prices than the market value. These programs can be seen as a marketing tool used by some real estate agents to attract potential clients. Often, the guaranteed sale price is set slightly below market value, between 3-5 percent, and is reduced further by an additional 5-10 percent every 30 days if the house remains unsold. In some cases, if the house hasn't sold by the time the contract expires, the agency will buy it for less than 70 percent of the market value. This can result in the homeowner receiving less money for their property than they would have if they had sold it at market value.
Additionally, it is important to note that some brokerage rules prevent real estate agents from buying their own listings. In such cases, it is advisable for sellers to discuss with their real estate agent what will happen if their home does not sell before listing it. Sellers should also ensure that their real estate agent is demonstrating that they have done everything they committed to doing to bring multiple buyers to the property. This can include staging the home, which studies have shown can help sell homes faster and for higher prices. In summary, while guaranteed sale programs may seem attractive, they can result in sellers receiving less money for their property than they would have if they had sold it at market value. It is essential for sellers to carefully consider the terms of such programs and to work with a reputable real estate agent who has their best interests in mind.