Why a Guaranteed Sale by an Agent is NOT the best option for you

Why a Guaranteed Sale by an Agent is NOT the best option for you

Guaranteed Sale is a program used by most agents to reel in sellers. Basically, an agent would tell you something along the lines of “I’ll close the sale of your house in X days or I’ll buy it from you for the guaranteed sale price”. A program like this can sound very promising to a seller, but is this the best choice to make?

Let’s examine and compare the guaranteed sale program in some more detail so you can decide for yourself if this is the best route to take when selling your house:

Information on Guaranteed Sale Programs

This is how Guaranteed Sales programs work, in a nutshell:

The seller and the agent agree on two prices: a list price and a guaranteed sale price. The list price is usually how much the seller would like his home to be listed for. The guaranteed sale price is what the realtor is going to buy the house for in the unlikely event that the house does not sell in X number of days.

A written contract is involved which is signed by the seller and the agent. In this contract, the two prices are determined as well as prerequisites in order for the deal to be initiated. These prerequisites commonly involve (but are not limited to): inspecting the home and making small repairs, hiring an appraiser and staging the home for viewing. As you may have guessed, the usual process of how an agent would sell your house is still being done.

Now, when X number of days has elapsed and your home is still on the market, the agent is going to purchase your home from you for the guaranteed sale price that was agreed on.


This would probably paint a better picture for you:

You’d like your home to be sold for $70,000 after repairs and other expenses. The guaranteed sale price is (which, by the way, is determined by the agent) $50,000 after X number of days. After X number of days have passed and your house does not sell, the agent ends up buying it for the guaranteed sale price. You walk off with $50,000 while the agent is going to sell it for a much higher price, like $80,000 plus making a % on commissions.

This is how an agent makes money out of Guaranteed Sale Programs. This is not specifically a scam but is questionable to most realtors because the agent might not be doing the right measures so his clients’ house is sold at top value.

Compared to Selling to an Investor

Commonly, sellers settle because they have a foreclosure to take care of or cash is urgently needed. Guaranteed Sale Programs can work in this way but there’s probably a better alternative with quicker results. Have you ever thought about selling your house to an investor? Here’s a summary and comparison:

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It’s always a good idea to take a look at alternatives. Gold Path Real Estate is an investor that specializes in the Twin Cities area. If you have a problem property or going through a troublesome situation, they may be able to offer you an opportunity to wash your hands of a less than desirable property situation. Call 612-758-0071 NOW if you are looking to sell.

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