How can an agent guarantee that your home will be sold in a certain amount of time?
It has something to do with price.
We’ve all seen the ads on billboards and in magazines, on bus benches and in the newspaper. Real estate agents who will guarantee to sell your home in __ days or they will (SELL IT FREE/Pay You Money/Buy It)!!
So how can an agent gurantee that the home will sell? Well, let’s think about this.
If you are an agent and you sign a written guarantee with a home seller saying that if their home does not sell in 60 days you will pay them or buy the house, how would you want to price that home?
My guess is that most agents who guarantee they will sell a home price it lower than the top its market potential, to ensure the sale.
The reality is that nobody can predict the future. A guarantee that a home will sell in a certain time frame is a gamble. Even with all the marketing in the world it comes down to this- they are betting they can sell it in that amount of time. And because they are signing a written guarantee my guess is they might want to hedge their bet by pricing it lower than it normally would be priced.
Sometimes a home seller needs to sell as fast as possible for some reason. In those cases they will probably be expecting to offer the home at a lower-than-market price. But in my experience, most sellers would rather sell for as much as possible, not as quickly as possible. When I have a listing that sells to the first buyer who looks at it or the first week it is on the market, many times the sellers are wondering if they under-priced it. And I would too. Sometimes the right buyer just happened to see it at the beginning of the listing period, but if I listed my own home and received three offers the first weekend and they were for more than my listing price I might wonder if I priced it low.
I’d rather sell my home for $325,000 in 64 days than $299,900 in 4 days. And I wouldn’t guarantee that I can sell a home in ___ days unless I knew it was priced pretty well for the market and area. Not that everyone who markets this service is under-pricing homes, but I think by guaranteeing a sale, it makes it more likely that they would.
How about you?