Dara Lewis' Blog
So, you’re looking for a real estate agent and you find one with a “Seller Guarantee”—If your home doesn’t sell in 6 months, I’ll buy it! Sounds a little too good to be true, right? When provided by legitimate agents, these aren’t scams, but rather a genuine option if you need to sell your home quickly.
With enough time on the market, a good seller’s agent, proper staging and a marketing plan, most homes will sell in a seller’s market. That “time on the market” requirement can be a hang-up for some sellers though. If you are moving on a strict timeline due to a new job, divorce, inheritance sale, or any other reason, a guaranteed timeline can be a win-win. On the other hand, the purchase will likely be lower than market price so if you can afford the time, selling to your agent could be a terrible deal.
Common types of Guarantees
- “Percentage of Value Guarantee”— The agent promises you a portion of the market value if the home doesn’t sell. Keep in mind that the promised percentage will be based on fair market value, fewer fees, and commissions, so it will come out to be a lower take-home percentage.
- “Timeline Guarantee”—The Agent promises to buy your property if it doesn’t sell in a certain length of time. Usually, timeline requirements go together with price requirements, meaning that you likely must agree to a specific markdown plan, so your agent has the price they want by the end of the timeline. Given this markdown schedule, you likely will receive less than fair market value for your property, but you can be sure that it will sell within the specified timeline.
- “I’ll Buy It Guarantee”—Usually, this type of offer comes from agents who work with a group of investors. Investors either want to re-sell your property or rent it out for profit, so you can expect to lose a percentage of the equity.
The Real Win-Win
You will always get the best results from choosing a real estate professional that knows your market and can help you sell your home at true market value or higher through good advertising, proper staging and curb appeal. However, if the timing is more important one of these seller guarantee options could be the better choice for you.
Thinking of Selling? Talk to your agent about all your options including any seller guarantees available to you.
Selling a home may prove to be a long, arduous process. However, if you act as a reasonable home seller, you can identify home selling challenges and overcome such problems without delay.
Now, let's take a look at three tips that you can use to become a reasonable home seller.
1. Learn About the Housing Market
Real estate is complex, particularly for home sellers. Fortunately, many housing market resources are available to help you become a real estate expert.
For example, any home seller can perform an online search to evaluate the housing market in any city or town. Then, a home seller can use this real estate data to analyze the prices of houses that are similar to his or her own and price a residence appropriately.
Home sellers also should look at the prices of recently sold houses in nearby areas. That way, a home seller can find out whether he or she is preparing to enter a seller's or buyer's market and plan accordingly.
2. Try Not to Get Too Emotional
Let's face it – any home selling journey likely includes plenty of ups and downs. But a home seller who understands the best- and worst-case home selling scenarios may be better equipped than others to stay calm, cool and collected, even in the most challenging situations.
Although a home seller may expect his or her home to sell quickly, it is important to set realistic expectations before you list a residence. This will enable you to avoid potential pitfalls that otherwise can prevent you from achieving your home selling goals.
For example, a home seller who receives a home appraisal will have a good idea about the true value of his or her house. And if the home seller receives a home offer that falls well below the appraisal amount, he or she won't feel disappointed. Instead, this home seller should have no trouble politely declining or countering the proposal.
3. Consult with a Real Estate Agent
If you're unsure about how to price your home or promote your house to the right groups of homebuyers, it often pays to get expert help. Lucky for you, real estate agents are available in cities and towns nationwide, and these housing market professionals can help you make informed home selling decisions.
A real estate agent possesses comprehensive housing market expertise and is happy to share his or her home selling insights with you. This means if you ever have questions about what to include in a home listing, your real estate agent can help you out. Or, if you are uncertain about whether to upgrade your house's interior or exterior, your real estate agent is available to provide honest, unbiased home improvement recommendations.
Becoming a reasonable home seller can make a world of difference in any housing market, at any time. Take advantage of the aforementioned tips, and you can quickly and effortlessly navigate the home selling journey.