It's a gimmick.  They buy the property but at a ridiculous discount, in the end the seller losses.  

Companies and some single agents have been doing this for many years.  They make sellers sign on dotted line with very specific things that need to be in place in order for this to go into play.  I highly doubt most ever ended up buying homes themselves.

those "broker will purchase" deals are not the sale price anyone is looking for.... there's a commission deducted twice....buying and selling.... carrying costs.... profit on the sale.... and the list goes on.... 

Hi Tim -How? What are the benefits to me as the seller?

The bend and snap works every time!  Hahahahah! Long, profitable day.

I'm not fighting for a listing.
Listings fight for me.  See my value or kiss my Italian butt.

Those companies have so many caveats that sellers should be shrieking.

I regularly compete with a brokerage that has that as a sales pitch.  They don't advertise it much these days, as we are in a seller's market.  It's never the deal that sellers think when they see the ad.  

Tim, I've seen those promises around our area for many years now.  In our markets that approach would just seem silly.  Don't you agree? 

Why don’t they just outright buy it at the sellers asking price and cut the drama? Obviously, if it can’t sell in 90 days - perhaps nobody wants it. Something smells fishy about this approach.

Definitely a "gimmick" -- I'm not a Fan of these and can't see how the Seller wins with this approach.  I say if the seller is willing to take that kind of a "hit" why not just price it right and just get er sold?

So this type of promotion has been around the "Greater Los Angeles Area" for quite some time.  Like anything, the devil is in the details.  The fine print makes it so that they basically never have to honor that promise... and when they do, it's an offer thats "pennies on the dollar".

Not a new concept, agents have been doing this for as long as I remember.

the price they pay is fairly low, enough to cover their risk should anyone take them up on the offer.

Everybody needs a way to convince the seller to sign a listing agreement. Some do it with discounts, some do it with gimmicks, some do it with trickery. Most just offer good service and expertise. Whatever floats your boat.

That's an oldie but a goodie. That scam has been around for 20 years (read the fine print).

Just as Aida Pinto wrote. These carpetbaggers do nothing to advance our profession. Relax, it won't take long for thinking clients to see right through this garbage.

There will always be some business trying out a new gimmick. Their math doesn’t add up. Somebody is going to pay. 

Do a search of their listings. How many expired or canceled?  Check to see if they ever took title to the ones that did.  

This is not a new model. That is an old approach. The difference is the 2% commission rebate. That is on the “home’s value”. And what is that amount? The list price or the pre-determined guarantee purchase price.

Set the guarantee purchase price low enough and the broker cannot go wrong. If the guarantee price will make the seller happy, would you list for more? How much more…in order not to get stuck buying a bunch of houses at inflated prices?

And when the market changes? Good luck!

It's usually a gimmick that involves conditions which are : You must buy one of the listing agents listings, and it must be a move up home purchase, and other such conditions.

   i have seen this pitch before.  In one case, the listing broker agreed to pay 80% of a "quick sale appraisal, subject to any mortgages or liens".  The Seller would still pay the commission; the seller would pay all closing costs.

     That amount would be about 60% of the market value.  Probably not enough to cover the mortgage, which would void the promise.

Yeah I am not a fan of it either. So what happens if for some reason you dont sell it? My thing is if you sell it in less than 90 days,you won't have to buy it.

Been around a long time and I am not fond of the approach. 

I have wanted to buy a listing before but, never that way!

These companies are costing the sellers to leave money on the table by offering to buy their homes at a hefty discount if the homes don't sell. Sadly, there are sellers who fall for this tactic and wind up walking away from some fairly large sums of money sometimes.

Oldest "trick" in the book... and nothing new. Just ask them at how much of a discount they buy the houses! They like to say they'e never had to buy a house... of course not... when the home fails to sell the sellers never sell to them... they just find a new agent. (BTW, I've been that new agent more times than I can count.)

Old scam.

Old scams.

There are several agents that offer that guarantee. It includes specifics price reductions all the way to the 90 day mark where the list price is somewhere around 80% of where it started.

Craig Proctor has been using that for years and I'm sure before his use some other Realtor thought of the same ploy. You obviously buy it at a discount or you'll go broke. Proctor had an addendum to the listing agrement outlining his model.  Old School.

It's just a hook to get sellers to call. 

As many others have said, nothing new. I doubt often or even ever the agent buys the house, but it gets their phone ringing, which is their intent. -Kasey

This attracts the gullible and uniformed. At these prices & stakes....no games!

Good for them. 

I have heard these ads for quite a while around here. I figure there must be a LOT of fine print. 

Read the small print, they're not buying anything that isn't profitable for them. 

It's a pitch.  It rarely happens and in general in this market, if you can't sell in 90 days, you should consider another career. 

PropertyMinder (AccelerAgent) - not a good option for consumer as terms and conditons of the final price is pretty low.

You’ve already got the answer that the seller loses on the deal. You always make your money on the buy!

My thoughts:  The big print giveth.  The small print taketh away.  Read the small print!

Nothing new under the sun they are simply offering what many many already offer. A deal they have NO intention of making good on because of their terms these deals are simply a way to get the appointment. But the guarantee to buy comes with some pretty undesirable terms for the sellers.

WE have a company doing this here also...Know several agents that have worked with that company and were not impressed, but I have no first hand.

We saw many companies like this a few years ago, but they will only pay pennies on the dollar.

This is one of the examples of why the general public thinks so little about our industry.  It is snake oil.  Unfortunately, there are many snake oil salespeople out there.  Rather than deliver value and service, they build their shaky businesses with scam tactics that are, IMHO unethical.  I wonder if the agents who use this tactic could even get a loan for the properties (I'm betting that if they ever do buy, they are not cash buyers).

The catch is the price that they will buy the home for.

It sets the seller up for a potential loss and the listing agent with a potential windfall. Not a fan!

We have one here but the fine print says they list at agents price and deduct every 2 weeks. The agent will by back at roughly 60% value

Thank you

Back in 1989, prior to be a Realtor, we listed with Forest E Olson and their Move Fast Guarantee.   They stated "we'll sell your home in 30 days or we will buy it"  We needed to sell that fast and listed with them.  The home didn't sell with the 6% commission so they bought it with a 10% commission.  We were happy to pay it, otherwise we wouldn't have been able to buy our brand new home in an incredible neighborhood.