Selling Your House in Mid Silicon Valley? 5 Reasons to Beware of The Guaranteed Sale Program
When it comes to respected professionals, agents are as low on the scumbag pole as one can get. Below lawyers and used car salesmen by a long shot.
The lure of big money makes people want to believe that selling your house in Mid Silicon Valley is easy, so why not, right? But when the reality of the brutal nature of the real estate business hits and the month isn’t over but the money is, it can encourage honest people into pushing the ethical line.
Realtors are the target of every scam imaginable. Since the common belief is that there’s so much easy money to be made, there are thousand – more like hundreds of thousands – of vendors who want a piece of the proverbial pie. They sell anything and everything promising it to be the cure to an empty bank account with the flippant comment, “It’ll only take you one deal to pay for it.”
One of the “tools” that’s been sold for decades is the Guaranteed Sale Program. It’s a way for an agent to differentiate themselves from other agents in the hopes of attracting attention from those selling their house in Mid Silicon Valley. The problem is that it’s a bait and switch and completely unethical.
The pitch is that if the salesperson can’t sell the house they’ll buy it. “We’ll sell your house in 30, 60, 90 – whatever – days and if we can’t, we’ll buy it.”
How many houses can one agent buy?
The asterisk in the ad let’s you know that there’s more to the story than just your intuition yelling at you “DON’T DO IT!” When selling your house in Mid Silicon Valley, there usually isn’t a need for you to use this gimmick but you might be curious as to how it works. You probably already know to stay away from it.
How Do Guaranteed Home Sale Programs Work?
The program guidelines are pretty slim past guaranteeing to sell your house. After that, agents can make up the terms that will work best for them. Here’s some common ones:
- You may have to agree to purchase one of the other homes the agent has listed for sale. WTF? Read that again, yes, purchase one of their other listings. I don’t know what they do if they don’t have any other listings.
- You “qualify” for the program by agreeing to list your property below market price – typically 10%. In the current Mid Silicon Valley home sale market buyers are immediately going to ask, “What’s wrong with this house?” Not the way you want to start the marketing on your most valuable asset.
- Now that the market thinks your property is damaged goods, it’s fine because you’d have agreed to preplanned price reductions anyway.
- Not only do you have to qualify, so does the property, to arbitrary requirements made up by the agent.
- If you get to the point that the house hasn’t sold and you want to use the guaranteed sale clause to have the agent purchase your house, the offer you’re going to get may surprise you. You’re not going to start at the market list price or the 10% below market list price, or even the price you’ve reduced to over the length of the agreement. To get to the final price, you’ll start at the most reduced price and deduct the amount of a typical commission and the cost of any repairs the house needs. I’m not going to waste my time calculating where that price could end up. It’s ridiculous.
So how can you find a real estate agent you can trust when selling your house in Mid Silicon Valley? You’ve probably hired professional service providers in your life via referral, not on a whim. Your real estate agent is no different. You’re going to pay this agent a hell of a lot of money, don’t just pray they’re going to do a good job. All agents are not the same. A good one makes a huge difference; a bad one can not only make for a very bad experience but you could lose a lot of money, too. So shop around. Ask your friends for referrals. Look for reviews online.
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I help home buyers and sellers in Mid Silicon Valley focusing on the cities of Foster City Homes and Condos For Sale, Redwood City Homes and Condos For Sale, Redwood Shores Homes and Condos For Sale, San Carlos Homes and Condos For Sale, San Mateo Homes and Condos For Sale. If there’s anything I can do to help you, please let me know.