Listing Gimmick "We will buy your house if it does not sell" - Let's Get Real

Have you heard or seen those ads by real estate agents that boldly announce that they will purchase your property if they can't sell it?  Let's get real about it.

1.  The reality is that virtually zero home seller ever sells to the agent/broker when a listing is obtained by the promise that the agent/broker will buy a listed property in the event nobody else wants to buy it while listed with them (read all the disclaimers in their ads and listing materials).  The agent/broker knows that the itty bitty fine print makes this a very lopsided offer that exists to benefit the so-called real estate professional at their own client's expense.  Stated bluntly, a seller would receive an offer that is significantly reduced from market value - reduced by the amount of broker's commission and reduced for various improvements & repairs, likely coming off an already drastically reduced list price. 

2.  These types of listing arrangements also require for certain required price reductions during the period the property is listed.  These price reductions, if they were to actually occur, would likely stimulate buying interest and produce offers.  The agent/broker knows that this part of the deal pretty much guarantees that they will not have to buy the property.  So, yes, you will get your property sold during the listing more times than not; however, the drastic price reductions will likely stimulate offers that are far below what you had in mind when you first listed with the agent/broker.

3.  Let's take a moment and bring in the dry topic of ethics.  Does it take a genius to see a conflict of interest here?  This agent/broker that starts a relationship with you by making a guarantee of sorts to sell your house, in effect by becoming a prospective buyer, and then he/she expects to represent YOU as your agent.  Will they truly work toward your best interest?

4.  Finally, we here at Invinci Real Estate Advisors find it most appalling that any real estate professional would resort to using gimmicky tactics in their advertising.  This particular "we will buy your property" gimmick, in our view, is an insult to the public and causes injury to the profession.