Continuing on from my last blog on What is a Guarantee Sale Program for Real Estate and the Misconceptions we will start with the definition and address the misconception “You Will Steal My Equity”

What is a Guaranteed Sale Program for Real Estate.

“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.”

I always hear from people their fear is they will not get their equity or the true value of the home. I understand where they are coming from and if I did not understand the program I would feel the same way. The equity in your home is what you walk away with once you have closed on your home and the check is given to you once all expenses to sell your home have been paid. This has nothing to do with the market value of your home. When you put your home on the market you price it to what the market is saying you should sell for. This is no different than a guarantee sale program. A month into selling your home you get an offer and you negotiate an acceptable price. You and the buyer are happy and you move on to closing the home and getting your equity.

Lets add one element to this situation. When you listed your home you decided to be part of the Guarantee Sale Program because you wanted to get your new home construction started now. Your home went on the market just like before with the same list price. Over the first month on the market you had the same amount of showings, the same feed back about your home and the same offer came. You negotiated the same price and terms of the offer on your home. Went to closing and was given a check for your equity and the amount of the check was the exactly the same with the Guarantee Sale Program as it was with out the Guarantee Sale Program.

So my question is where did your equity get stolen. That is correct it did not get stolen. You are in the same situation as if you did not use a guarantee sale program except for one thing. Your new home construction process has started and by the time you close on the home you are 2 to 2.5 months into your new construction home being completed.

Because of the Guarantee Sale Program you have benefited by

1. Getting your new home construction started

2. Saving time and money by not having to wait until your existing home closed

3. The piece of mind not worrying about double payments.

A Win Win for all parties.

Next week I will address the Misconception of “You will offer me whole sale price for my home”

I will be addressing more Misconceptions of the guarantee sale program. Here’s a link to the RSS for this series.

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