TAREG Guaranteed Sold Program This is a quick over view of our system that allows us to guarantee the sale of your home Close
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What to Know About the TAREG Guaranteed Sold Program

Everything Home Sellers Should Know About the Guaranteed Sold Program

To real estate agents and home sellers alike, the Guaranteed Sold Program can seem like too good of an offer to be true. How could a Realtor running the program risk opening themselves up to such a liability? There are countless homes on the market each year that don’t sell, which can leave both real estate agents and homeowners wondering, “What’s the catch?”

The Guaranteed Sold Program Explained

The program works by offering convenience to the seller and profit to the agent. If a home seller agrees to put their home on the market with the “Guaranteed Sold” offer, if the house is not sold within 30 days, the real estate agent will agree to buy the home at investor pricing. Simply put, the agent will buy the home below market value in exchange for the convenience of being able to close quickly and move on to their next home.

The system is designed to create interest in a specific agent or real estate group, and ultimately to encourage people thinking about selling their home to pick up a phone and select that agent or group above all the others. 

The Value of the Guaranteed Sold Program

The real value of the Guaranteed Sold program is not in guaranteeing that a homeowner sells their home in 30 days or in buying homes at investor pricing. The value of the program comes from the interest it generates: The Guaranteed Sold Program is a lead-generation tool made to encourage buyers to pick up the phone and contact an agent or group and enable an agent to begin the discussion of selling that homeowner’s house.

The Guaranteed Sale promise is very attractive to homeowners, especially for homeowners moving to a new area, buying a new house, downsizing, or operating under any other moving timeline with their home. By agreeing to the stipulations of the Guaranteed Sold program, homeowners get all of the benefits of a real estate auction, in terms of knowing when their home is going to sell, while also being free of the uncertainty of the real estate auction, being the price at which the home will sell for.

The Sales Price of a Home

When a real estate agent works with a homeowner to sell a home, the listing agent for the home will assess the value of the homeowner’s property using a comparative market analysis (CMA). They will determine what other homes of equivalent value have sold for within the past six months and factor those results in while generating a price range in which they believe a home will sell.

The home may sell for higher or lower than the estimated sale price, but generally homes are sold at around the price generated by the CMA.

Selling a Home With the Guaranteed Sold Program

With the Guaranteed Sold program, the home will be sold for less than the price listed on the CMA. When a homeowner and a real estate agent agree to sell a home with the Guaranteed Sold protection, the agent and the homeowner must agree on a below-market price that the home will be sold at if the home fails to sell within the agreed-upon timeline and with the agreed-upon conditions.

The main conditions for a Guaranteed Sold house are as follows:

  • Agree upon an investor selling price for the home prior to it going on the market.
  • Allow the agent to market the home for 30–90 days at the fair market price of the home.
  • Agree to sell the home at less than the fair market price at the end of the allotted timeline if the home fails to sell.

Should all of these conditions be met, a home will be sold to an investor (the agent or another investor) below market value.

Why Sell a Home For a Lower Price?

When a homeowner is faced with the option of selling their home at the market price or the investor price, why would they even think about selling at the much lower investor price?

This is the true benefit of the Guaranteed Sold program. It gives homeowners the genuine opportunity to sell a home at a date and time agreed upon with the listing agent, but with the understanding that the agent has to buy at a discounted price so the agent can factor in the acquisition and the holding costs, then sell the home themselves at the market price.

The majority of homeowners are not in a situation where they need to sell at below-market pricing, and they would much rather market the home for sale to get the maximum amount of money for the home. Whether the homeowner takes the Guaranteed Sale option is up to them, but the listing agent will have the chance to demonstrate to the seller that based on their research, the home will sell within a certain range of profit if they list the home the traditional way.

The Benefits of the Guaranteed Sold Program

There are circumstances where the Guaranteed Sold program can be genuinely beneficial to buyers. For those who need a quick sale and can’t afford to invest in a home to get it to a market-ready state (be it due to deferred maintenance, divorce, a multiple offer situation, selling an inherited property, or any other circumstance), a Guaranteed Sold assurance can enable homeowners to wash their hands of an unwanted home.

The program has been used effectively around the country to allow listing agents to offer the program and meet with prospective clients. If you want to talk with us about listing your home, fill out the form below to learn more and have one of our agents get in touch with you. If you’re interested in selling a home with the Guaranteed Sold assurance, our agents will be happy to answer your questions.

For the terms and conditions of the Guaranteed Sold program, click here.

An Overview of the Guaranteed Sold Program:

This is a brief overview of the Guaranteed Sold program to give homeowners peace of mind when selling their homes.

1. Why Would a Homeowner Need a Guarantee?

A homeowner might want a guarantee on the sale of their home if they can’t get a mortgage approved on the purchase of a new home until the previous home has sold. A homeowner may also simply want to sell regardless of profit and have the assurance of a firm deal.

2. Can I Sell My Home for More than the Guarantee?

In most cases, a home sold with the Ashton Real Estate Group will sell for higher than the agreed-upon guarantee price.

3. How is the List Price Set for a Home?

The Ashton Real Estate Group uses sales of similar properties in a home’s area to evaluate the market list price of a home. 10–15% of the the approximate net will be taken off of the value of the home to account for real estate commissions and account for existing market conditions to give homeowners a baseline of what they can expect their home to sell for.

4. Does the Ashton Real Estate Group Guarantee Homes Outside of Nashville?

Yes! We have historically offered this service outside of Nashville, but our agreement to the purchase is dependent upon current market conditions and the distance from Nashville.

5. Will You Guarantee Any Price?

The maximum guarantee price for a home is subject to change, but the price itself is dependent on the value of an individual home. A competitive market analysis is necessary to ensure accurate pricing for a Guaranteed Sale.

6. What Happens When a Home is Sold For Higher Than the Guarantee?

If a home is sold within the traditional marketing period prior to the Guaranteed Sale of the home, the homeowner will keep the higher sale price less commissions, and the guarantee becomes void.

The Guaranteed Sold Program in Summary

The Guaranteed Sold price of a home is lower than the current market value but provides homeowners with the assurance of knowing their home will be sold regardless of buyer interest. Many homeowners choose to take the guarantee because they feel comfortable that they will sell the home during the allotted market time but want the added assurance that there will be a failsafe if it doesn’t.

The value of the Guaranteed Sold program is that it gives homeowners peace of mind.

Although there may be some conditions and restrictions that apply, the best way to determine if a Guaranteed Sale will work for you is to contact one of our listing specialists today to come view your home and give you a market evaluation to determine what the price of your home would be.

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