Feb. 15, 2007 - The Post Card

As I stated at the end of yesterdays post, I have recently received a "Just Sold" post card from one of the local real estate agents.  The main thing that caught my eye was the statement he made that if you gave him your home to list he would "sell it in 69 days or I'll sell it for FREE...GUARANTEED!*.".  Then in very tiny and blurred print at the bottom of the card it says "*some restriction apply".  I promised you yesterday that I would do a post about what I thought those "restrictions" might be. 

In all fairness I went to his web site to try and see if I could find those "restrictions" listed there.  Unfortunately the offer is not extend on the site, so I could not get a clue.  I guess I will just have to tap into my own expertise to see what it would take for me to extend a "guarantee" like this.

First and foremost, I would have to warn you that if I was going to sell it in 69 days or less we would have to definitely price it below market value.  The average market time in this area is 82.6 days.  That tells me that your average priced listing would take about that much time to sell so to get the job done we would really want to go low.

Then we would have to discuss the condition of your house.  All of those minor little defects that you have lived with so easily over the years are going to have to be repaired.  If you want to beat the average, your house is going to have to be above average.  There is a current inventory of 222 houses available in the area right now and with an average market time of 82.6 days, smart buyers, with savvy buyers agents are not in any great hurry to settle for just anything.  We will need to put this under priced listing in move in condition.

Next I would have to tell you that "free" is really not free at all.  If it took more than 69 days to sell, you would still have to pay the cooperative compensation listed in the MLS to the buyers agent.  They have nothing to do with this "guarantee" and they are going to want to be paid.

Do you see why this gimmick caught my eye?  Failed "by owners" and other bargain hunters may well call him because of this post card, only to learn that "free" really isn't a great bargain after all.  This will only justify the reasons they have for trying to go it alone any way.  In my not so humble opinion a better, more truthful and still pretty effective hook would be, "I'll sell it in 90 days or I'll give you 50% OFF THE COMMISSION...GUARANTEED! A fair market price restriction applies." 

Is your REALTOR® putting it all up front and on the table?  I am. 

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