Does Anyone Offer a REAL Guarantee in Real Estate?

By
Real Estate Agent with Long and Foster Real Estate VA License # 0225089470

Does Anyone Offer a REAL Guarantee in Real Estate?

In the strongest seller's market on record in the suburbs of Northern Virginia, there seems to be some rather superfluous guarantees being made.  They are along the lines of, "If your home doesn't sell, I will buy it."  Current market conditions are such that some listings go under contract BEFORE they hit the market.  They get offers while they are in Coming Soon status.  Those that dare to deal with showings get multiple offers and are off the market in a matter of single digit days.  So who is really worried they won't sell their house?

Sellers demanding higher prices than even this frenzied seller's market may be likely to seek that guarantee.  Or sellers that refuse to even do paint or minimal listing preparation.  Sellers that meet both of the previous mindsets certainly couuld use a guarantee.   And I suppose there is the possibility of a seller waking from a coma they have been in since 2009 when the market was slower would be hesitant to understand that their home will sell in a matter of days.

The reality is, no listing agent is going to make that guarantee and take an overpriced, under improved listing and then give a seller what they wanted in a list price that was too high.  This type of guarantee typically involves a slightly below market buy out.

What would be interesting to see is a guarantee from a buyer's agent like this, "Your offer accepted or I will sell you my own house."  Now there is a guarantee, right?

There is no risk free track in real estate as a seller without giving up some of your precious equity.  When you put the risk in someone else's hands, they reap the rewards.  However, in a seller's market, hiring a local, professional agent with a track record of sales to show you how other sellers made out in various scenarios is what you need.  

Presently, in our Northern Virginia market, the majority of risk is on the shoulders of buyers.  They are being pushed to write offers without inspections and without appraisals.  And in a buyer beware state, that is a boat load of risk.  If a seller needs a guarantee their home will sell in this market, there is something wrong somewhere along the line.

 

Comments (16)

Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

"Presently, in our Northern Virginia market, the majority of risk is on the shoulders of buyers.  They are being pushed to write offers without inspections and without appraisals."  I think that is a risk in many places across the country right now, Chris Ann. 

Feb 19, 2022 05:37 PM
Chris Ann Cleland

Myrl Jeffcoat --It's crazy out there in so many markets.

Feb 20, 2022 08:49 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Chris Ann, on having this blog FEATURED in the Old Farts Club group!  

Feb 19, 2022 05:38 PM
Chris Ann Cleland

Thank for you the feature in your group.

Feb 20, 2022 08:49 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Chris Ann this is not the first time this 'I'll buy your home if it doesn't sell' offer from some agents has happened.  I've seen it before and it's not one I ever followed.  The homes I'm seeing sold and in poor, not updated in 20 to 30 year condition doesn't surprise me after year two of our crazy hot market ( once again).  I saw one  sold in our neighborhood and I'm still shaking my head about that price as I know the condition of that home and it doesn't compare to the others by a  long shot. 

Feb 19, 2022 08:35 PM
Chris Ann Cleland

I saw one in our market who evidently didn't want to get into painting and prepping with minor updates, or the agent didn't advise them it was a good idea.  They sold, unknowningly, to a flipper who turned around and sold in less than two months for $40K more.  He had the expense of a small roof, paint and light fixtures.  At that time last year, buyers were starting to balk at properties not move in ready.

Feb 20, 2022 08:54 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I would say no.  There’s always something deeper and more variable at the heart of the matter

Feb 19, 2022 11:00 PM
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Those guarantees always have a string attached , too good to be true and a way for agents to get their foot in the door. Always beware when someone is selling snake oil !

Feb 20, 2022 04:14 AM
Chris Ann Cleland

Buzz Mackintosh --Strings indeed.  The fine print always reveals what the sales price for the agent buying it would be, and it is usually not very exciting.

Feb 20, 2022 08:55 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I have never paid much attention to those types of guarantees but I am certain that the sellers that take advantage of those guarantees are being taken advantage of.

Feb 20, 2022 05:08 AM
Chris Ann Cleland

Brian England --In the seller's market we are in, they don't ever need them.  Yet some are still having anxiety over not being able to sell.  I think the pandemic has people wired to have general anxiety now.

Feb 20, 2022 08:56 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Chris Ann... I've always considered those guarantees a bit of a "come on." I had a client who fell for one of those... the buy out price was 60% of the home's real value. And they overpriced it to begin with. Once I got the listing, I priced it right and sold it quickly.

 

The "real" guarantee I offer clients is my Easy Exit Listing and Easy Exit Buyer Agency Agreement... I let clients know up-front they can fire me, no questions asked with no further obligation, if I don't do for them what I promised to do. In 30 years, I've never been fired. (But I have fired a few clients for not living up to their end of our bargain.)

Feb 20, 2022 05:30 AM
Chris Ann Cleland

I like your style Nina Hollander, Broker.  Very similiar to how I do business.

Feb 20, 2022 08:56 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Chris Ann - and if the fine print wasn't enough, people often discover the truth if they think beyond "the promise" they are being offered.   

Feb 20, 2022 07:14 AM
Chris Ann Cleland

Thinking beyond the headline is a skill not exercized enough these days Michael Jacobs .

Feb 20, 2022 08:57 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

That's just another of the deceptive practices that some agents think are smart. Sellers who don't read the fine print will get burned.

Feb 20, 2022 07:48 AM
Chris Ann Cleland

Marte Cliff --Yes they do.

Feb 20, 2022 08:57 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

No matter how the contract is written, an agent that offers that guarantee is not going to be the one coming up short at the end Selles need t be wary of the slick talkers and put their trust in a working professional with no gimmicks.

Feb 20, 2022 07:55 AM
Chris Ann Cleland

No agent is going to put themselves at risk.  That is absolutely right.

Feb 20, 2022 08:58 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I suspect there are many things "wrong" with sellers' mindsets if they are looking for a guarantee in the hot seller's market. Makes one wonder exactly how much bull crap they have been fed, and by whom? 

Feb 20, 2022 08:38 AM
Chris Ann Cleland

Kathleen Daniels, Probate & Trust Specialist --There is plenty of that brown stuff floating around.

Feb 20, 2022 08:59 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

FEATURED IN CRAP-TACULAR

 

Mr. Crappy Says

Flush the Bull 💩 Guarantee!

💩💩

💩

 

 

Feb 20, 2022 08:40 AM
Chris Ann Cleland

Thanks for the feature in your group.

Feb 20, 2022 08:59 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Chris Ann,
We have an office in town that offers the "we will buy your house" scenario. I'd love to get my hands on one of their contracts with the small print. 

Feb 20, 2022 08:57 AM
Chris Ann Cleland

Carol Williams --Go in on a sting operation.  Call them out for a listing presentation.  

Feb 20, 2022 09:00 AM
Carol Williams

I've thought about doing that, Chris Ann Cleland .  😊

Feb 24, 2022 05:59 AM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

You really have to be careful making guarantees in real estate or anything in life. This is no different

Feb 21, 2022 11:14 PM
Deepak Chauhan
Versailles Property - Irvine, CA
Irvine, CA ... the place to be

The real estate guarantee is just like a weather report ... 50% chances of a thunderstorm tonight.

Feb 23, 2022 10:45 PM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Chris Ann,

As I understand it, conditions apply for that guarantee. Similar to the real estate websites, that offer to buy your house. They will gladly do so for 75-80% of the actual value. If someone wants to leave that much money on the table, please let me know. I would try to buy it too.

Feb 24, 2022 08:52 PM