Real Estate Brokers is this legal in your STATE

[Jay Hinrichs]

http://theriangroup.com/your-home-guaranteed-sold-in-29-days-or-we-buy-it/

In our market in Portland Oregon there is usually one mega agent running this scheme

and I know its kind of an old play  ( at least to us old guys) But I am wondering if this is legal in your state.

Its like buying listings.. and or its very smart you either buy it wholesale or you get the listing.. he is expanding to CA..

Brokers Agents whats your thoughts and or maybe its something to copy.

I bet this agent spends at least 20 to 30k a month on Radio and other marketing.

 

[Dev Horn]

I know multiple RE investor/agents offering a "guaranteed sale program".  Nothing wrong with that - it combines the benefits of the 2 main strategies (cash purchase vs. listing) and gives the seller options that a single strategy would not provide.  That's why people doing this might beat you in your market.

And OF COURSE they would buy the house for cash at a DISCOUNT.  Are any of you guys running a "non-profit real estate company"?  Of course not.  Investors don't pay retail for houses.  That's not hard to understand.

There is a challenge tho when a licensed investor tries to present these two strategies side by side.  If I say, I can give you $75K cash right now, or list if for $100K, people do tend to focus on the value being $100K even tho no one has yet offered that for their house.  I've seen several different approaches to this to try to separate the cash offer and listing, rather than combine the 2 in a guaranteed sale offer.  One approach is a non-licensed buyer goes out, meets the seller, and makes the cash offer.  If that doesn't meet the sellers needs, the buyer offers to have their agent come over to talk about listing.  The guys I know doing this see a very high rate of people choosing their brokerage based upon this warm handoff from buyer to agent.  I actually prefer this, this is what I do with my agent partner.

One way we combine the 2 strategies is, I'll tell the seller, "If you list with my agent, I'll keep my offer valid for the next xx days, and if you decide to accept it, she will cancel the listing agreement".  Since my offer pre-dates the listing agreement, there is really no issue anyway, but the sellers that are on the fence like to know they can come back to me for the cash offer.  So we get similar results to the "guaranteed sale program" without really offering as such.

All that said, I think it's a creative way to market real estate services, and it can be a competitive advantage for those that employ the guaranteed sale strategy.