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He has some kind of guarantee where he will buy your house if it doesn't sell. Obviously that sounds a bit too good to be true and looking for any feedback. This is in PA.
Anyone offering to buy your house if it doesn't sell is NOT going to pay a premium. They will pay wholesale to you, with enough discount to cover their overhead for getting in and out.
If a seller is really motivated and has equity to burn, it may be acceptable.
If one is upside down, and has no cash to close, it just won't work.
Not meaning to speak for Mr. Wenner and his crew, or his business model. Maybe he has something else going.
With the ERA plan, roughly, the house is appraised by an independent appraiser. It has to qualify, and you have to do certain things (get it inspected and make repairs, price it within 5% of market, etc. - things that have shown to help a house sell faster for more money and that every seller should do anyway), and, with certain very limited exceptions you have to buy your house with a broker thta is part of the network (could be an ERA broker, could be another brokerage that's part of the network). You will be offered 90% of the appraisal value, and the house will remain on the market for a set period of time (usually 180 days). If at that point it has not sold with all the best efforts of the brokerage (remember, we're in the business of selling houses, not buying houses - we don't LIKE to have to buy a house in this way), you close. (You can in some cases get your equity out because you have a contract on the house that WILL close, and move on to buy your next house.) If, during that 180 days, you get a better offer, you can accept that offer and get out of your contract with ERA. If it doesn't sell within that period of time, clearly the 90% is market or above market. However, if the house sells for a profit after you have closed, you, not ERA, get the profit, minus holding costs (things like electricity, water, etc., that are expenses needed to maintain/show the house to sell it). If ERA sells it later at a loss, they don't come back to you for the difference.
That's the program I'm familiar with. There are others, by individual brokers, that are backed by investors rather than a giant relocation company, and they each have their own requirements (some have to be in certain zip codes, etc.). I'm not familiar with the particular one above.
Thanks for the quick responses. This is for my inlaws. They don't owe anything on their house so equity is not a problem. They don't "need" to sell at the moment, but are thinking about retiring and moving. They are actually going to move in with relatives so they wouldn't be buying another house. They heard this ad on the radio and thought it sounded like the best thing since sliced bread.
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