“It is an offer from a realtor to purchase your home at a set price with the expectation to list and sell it to a 3rd party for more then the guarantee price.”
This definition I know raises many questions and assumptions. I know because I have been doing guarantee buy outs for almost 20 years and I have heard them all.
- You will steal my equity.
- You will offer to buy my home at wholesale price.
- You are not motivated to sell my home because you will make more money.
- A guaranteed sale hurts the seller financially.
These are the most common assumptions made so let address each one and start with the basic concept of a guaranteed sale program.
When a seller wants to purchase a new home and they have a home to sell, they can not move forward with the purchase of the new home until their existing home sells. This is where a guaranteed sale program has the potential to create a win win for the seller. If the seller agrees to the guaranteed sale number, they have sold their existing home and can start building their new home. The Epps Elson Team will then list the existing home at a higher price and aggressively market the home to sell for more than the guaranteed sale amount. When the home sells the seller retains all of their equity. In the meantime their new home is being built.
Benefits to a Guaranteed Sale
This saves the seller time and money. In saving time they know with the start of the new home being built they will be in their new home in the next 4-5 months as opposed to 6, 7, 8, 9 months or longer because they have to wait for their existing home to sell and close before starting the new home. Depending on the sellers situation they may have other reasons for wanting to start and finish a new home purchase in a 4-5 month time frame. Like being in the new home before school starts etc.
In saving money the guaranteed sale program allows the seller to take advantage of the current promotions the builder is offering and to lock in interest rates when they are low and have the potential to increase. This is a huge money saver. If the home sells you would need to move into temporary housing while the new home is being built. With the Guaranteed sale program your displacement time would be much less. Two to Three months as opposed to 5 to 6 months. Another huge money saver and less stress on the family while staying in temporary housing.
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