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Has anyone ever had a RE company do this? I know several advertise it. Is it for real and how much do they discount the asking price?
There's a nationwide company that says they do this. I have spoken to them 3 times asking what I thought were very clear questions. I can't seem to get a straight answer. All I want to know is if it lists for $x and doesn't sell, what is their buying price?
The company I used to work for was a national company that offers to buy your home if it doesn't sell. It can be a fail-safe plan if your home qualifies. With this particular company, you have to get (and pay for upfront) an appraisal by an independent appraiser approved by the company. Your home must must be listed at to no more than 10% above the appraised value. During the 6-month listing period you may accept any offer from a buyer. If your home does not sell during the listing period, then this company will buy it for 90% of the appraised value. They will then immediately put it on the market again. If it sells for more than what they bought it from you for, they will pay you the additional money less costs.
Of course I've not gone into all the details. All in all it's a nice guarantee to a seller that has to move in a slow market. There are quite a few hoops to jump through and alot of paperwork (especially for the agent), but it might be worth looking into, depending on your situation. A word of caution, though, make sure you use an agent that is familiar with the program and has used it before (or has a broker who's very familiar with the program).
Last edited by Gretchen B; 04-08-2007 at 12:51 AM..
Reason: spelling
I don't know. I think many do what they want. In phx, we have many of these companies and I hear they low ball pretty bad. Some sellers just need out of the homes, so they take it. I don't hear of anything that they will give you money back. That would be a laugh out here. They take the house and run with any profits.
I don't know. I think many do what they want. In phx, we have many of these companies and I hear they low ball pretty bad. Some sellers just need out of the homes, so they take it. I don't hear of anything that they will give you money back. That would be a laugh out here. They take the house and run with any profits.
No, really, it's for real. In writing and everything. However, it's mostly a listing tool. They seldom up end up actually having to purchase a home. Here's why:
1) During the list period the seller agrees to drop his price every few weeks until it's down at that at that 90% below appraisal point. (Obviously the idea is if the home is priced that competitively, it will sell.)
2) Not all homes qualify for the program. There are alot of homes that will not qualify, i.e. too old, not in top condition, bad location, too large, too small, etc. In other words, they'll only accept the most saleable homes to begin with.
if they are really going to do it, when you sit down to write out your listing agreement they should also have a purchase agreement to fill out that has some kind of no sell contingiency
That doesn't sound so bad! I was going to lose 7% on commissions anyway. That's only 3% more.......
Thanks! I'm going to call those people again. I expected you to tell me it wasn't for real!
You were not paying attention, she said 10% below the appraised value and you also have to subtract "costs" which include realtor fees plus legal fees for the first sale, etc. Not as great as it sounds and if your home is a short sale, they won't do it at all. Your home needs to "qualify", you also need to make the home very available, lockbox, don't turn down showing times, keep the home spotless, etc. basically the things home sellers should be doing anyway but don't always.
In AZ the home would be purchased at 10% to 25% below appraised value, if it qualified for the program. Regardless of whether the house sold to a regular buyer or to the realtor group, the seller STILL had to pay RE commissions and (get this) if you opted for this program, the standard 6% commission increased to 8%.
And to find out the details, we had to sit through a sixty minute canned presentation (not specific to our home.)
If it sounds too good to be true, odds are, it is.
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It's Real, but probably not Realistic
Buy your home program
