sell house in 45 days or realtor pays (real estate, mortgage)

[therewego]

We are going to put our house on the market in a few weeks. In considering real estate agents, we came across a billboard that read that if this particular agent does NOT sell your house in 45 days, he will pay the mortgage...This is all it says on the billboard.
My questions:
1)Have you ever done something like this and does it work?
2)does anyone know how this works?
4)Does that mean that he will "buy" the house after the 45 days?

[AggieChris]

Even without knowing the specifics.....there has to be a catch. Make sure to read the fine print on what the buyout number will be. As Ronald Reagan used to say..."trust, but verify!"

In selling there are 4 factors that generate a sale:
1. Location (you can't change)
2. Condition (you can improve/modify)
3. Marketing (Typically the realtors job to generate traffic)
4. Price (you get to pick)

The key to selling is to price the home at or slightly below the current market price for a similar home in your area. The lower the initial price, the greater chance that you have for an offer coming in quicker. Do not trade a lower price realized for your home for a discount commission. Find an agent that has a track record for both selling and realized highest and best for the homes they market. Make sure to interview a couple people to both get a better sense of the market and a read on how well you and the agent agree on a strategy. Anyone can put a sign in the yard......and at a low enough price they can also sell it fast.

[jd433]

Before you sign anything have another couple of other Realtors do an analysis and tell you what they think the property is worth. Make sure that the property is being sold at its full market value. The catch usually on these is that the property is not sold for its full value. He probably has a group of investors that pick up your property at below its full value. This means that you end up with less money than you could have. In any market a house will usually not sell faster than the market average which in houston is about 80 days right now. 80 days not 45. If it sells faster the price must have been too low.

If you are not expecting to recieve money from the sell because your mortgage balance is higher than the property is worth then this is a good idea.

[Beto]

Originally Posted by jd433

Before you sign anything have another couple of other Realtors do an analysis and tell you what they think the property is worth. Make sure that the property is being sold at its full market value. The catch usually on these is that the property is not sold for its full value. He probably has a group of investors that pick up your property at below its full value. This means that you end up with less money than you could have. In any market a house will usually not sell faster than the market average which in houston is about 80 days right now. 80 days not 45. If it sells faster the price must have been too low.

If you are not expecting to recieve money from the sell because your mortgage balance is higher than the property is worth then this is a good idea.

You hit the nail on the head jd433. They will sometimes give about 90% of full market value if you are lucky.

[therewego]

thank you, I think we will stay away from those.

[AggieChris]

The exception to all rules is condition. Take some time and meet with someone that has an eye for what the consumers will find both appealing and potentially harming to your chances of selling. An example is 2 One Hundred Dollar bills. The first is wadded, crinkled, torn edges, and has a coffee stain in the middle. The second is a brand new crisp one hundred dollar bill straight off the US Mint presses. Which do you pick? They both have the same value, but our instinct is to get the one that shows best. The same is true of homes. A freshly painted home with new clean carpet can and will sell faster than the exact same model (all things considered the same) that has a little dust and dirt....