When an agent can’t sell your home and you want to buy it Opinion

If you can’t sell your home, can agents advertise to buy it?

This is a marketing strategy sometimes used by real estate agents and brokers. You’ve probably seen an ad like this in your mailbox, in your local newspaper, on a bus or bus shelter, or on social media.

Hiring an agent and signing with a broker who promotes this type of program gives sellers some peace of mind that their home will sell on a certain date and at an agreed upon price. If this is of particular interest:

• The market is cool or cold (“buyer’s market”).

• You’ve bought another property, can’t secure bridging finance and want to avoid having two mortgages at once, or

No matter the market conditions and no matter the level of interest you may have in your home, you’ll feel more comfortable knowing you’ll receive a pre-determined amount of money.

Having said all that, if this is something you are seriously considering, I encourage you to consider a few key factors when making your decision.

Guaranteed price and list price are not the same. The price you choose to list your property for sale and the price an agent offers through such programs may be different. In fact, I’d like to point out that typically the agents’ offers serve as a safety net, but aren’t necessarily highly competitive.

Understand what a brokerage’s offer rate is based on to determine how it compares to the market. Ask your agent to do a comparative market analysis to compare similar homes currently listed or recently sold in your area. The analysis involves examining houses that are similar in size, construction, style, condition and features. This will help you have an accurate estimate of the current estimated value of your home.

Understand the terms of the agreement. If listing your home with a “buy or sell” warranty is a key consideration for you, it’s important that you read and fully understand the fine print.

For example, check what fees are charged for a guaranteed purchase or whether you are obligated to sell to the broker if you don’t get a better offer. For this reason, I strongly recommend that you consult a licensed attorney to practice real estate law. They can review your contract and go over the terms with you so you can be sure you’re making an informed choice.

Expect agents and brokers who engage in this marketing strategy to maintain their integrity. And always act in your best interest as your client. This includes proactively searching for potential buyers for your home and fulfilling your commitments as a seller’s agent.

If you go ahead with a guaranteed offer from your agent, you can expect them to fully disclose their personal interest in the purchase and document any conditions or fees.

If you have questions about the home buying or selling process, please email information@reco.on.ca.

Joe Richer is the Registrar of the Real Estate Council of Ontario (RECO). This column is for general information purposes only and is not intended as legal or professional advice on real estate transactions. Follow RECO on Twitter: @RECO helps

Related Posts

16 great country houses selling from £450,000 to £6m as seen in Country Life

Our regular roundup of some of the best homes for sale in Britain is a holiday-friendly county home in Sussex. West Sussex – £5,950,000 An unapologetically charming…

Seattle’s housing market is headed for a recession.

What goes up must come down. That seems to be the motto of the U.S. housing market right now, with some of the nation’s most expensive and…

Ant Anstead Is Selling The Laguna Beach ‘Dream’ Home He Bought After Splitting From Christina Hack – See Photos!

There are some big changes for TV personality Anstead. On Wednesday Celebrity IOU: Joyride The co-host has listed his Laguna Beach, CA home for $3.3 million. Garbage…

San Anselmo adopted new rules after the garden was broken

San Anselmo has implemented new rules for community gardens based on how the city’s amenities are managed. The City Council unanimously approved a new ordinance Tuesday to…

Property: A thriving housing market in Dunfermline and West Fife

Dunfermline continues to be the “hub” for first time buyers in East Central Scotland. ESPC’s latest property report figures show that house prices in the city rose…

FOR SALE: Take a look around this stunning Wirral property with covered BBQ area and fireplace

The family home is immaculately finished and close to the beach. This beautiful detached house is for sale at £1,225,000. In the popular Wirral area, Hoylake, a…

Leave a Reply

Your email address will not be published.