Sold In 90 Days Guarantee – Good Value for Sellers?

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?
  

Homeownership is still relatively affordable in Kitchener, Waterloo and area. If you are selling your first house and moving due to lifestyle changes, chances are you have a home that is very attractive to a large pool of homebuyers who are experiencing a competitive local housing market. Houses in the $220,000 – $350,000 price range in Waterloo Region are selling well. A good majority of these listings are selling within a 90 day time period. Take the time to discuss your family’s real estate needs with a professional REALTOR® to ensure your next move is least stressful, most affordable and under terms that make sense to you.