REALTORS® use several methods of marketing to get new business. A unique approach you may have seen around Kitchener and Waterloo is the concept of having your home sold in 90 days or the listing REALTOR® will buy it. The program does have its benefits for those looking for a guaranteed sale. It’s also a concept you should research to decide if it is best for you. Here are a couple points you should consider when considering a 90 day guarantee:
- Commission Agreement – Typically these guarantees come with a higher commission schedule. This should be expected to cover the potential risk of having to purchase the listing personally.
- Maximum Listing Price – Executive homes, rural properties and multi-unit listings can remain on market for a longer period of time and tend to have a higher asking price. To protect against a house not selling in the 90 day period, the Listing REALTOR® could agree to only accept listings up to a certain price. Typically these types of homes for sale will sell within 90 days anyway.
- Final Sale Price – Should a home not sell within the 90 day period, does the Seller get a sale for the initial asking price? Are commission and other fees included in the final sale price? What’s the closing period?