Do Gimmicks Work?

Have you read the healines about the 100% Buy Back Guarantee?

I wanted a better understanding of how these program worked…what the "qualifying criteria" actually was.  With all the information normally available on-line, I was surprised that the only program terms I could locate were printed 5 years ago!  I have to ask, Why don't companies publish restrictions openly, especially ones that are as involved as these? In the absence of current disclosure, let take a look at what I did find... (source:
Seller's Application:
1.  Minimum price in program - $75,000; Maximum price in program - $600,000
2.  Listed X company with a present term of at least 180 days, at the full commission rate
3.  Free-standing, single-family dwelling; no co-ops, cluster homes, or condominiums
4.  Guarantee fee paid by buyer
Buyer's Application:
1.  If buyer wants the Money Back Guarantee, the buyer pays 1% of sale price.
2.  Buyer must sign Money Back Guarantee rider and Buyer application at time of presentation of offer
3.  The company must list and sell the property
4.  Free-standing, single-family dwelling; no co-ops, cluster homes, or condominiums
5.  Minimum price - $75,000; Maximum price - $600,000
6.  Buyer must occupy home as residence
If Buyer Elects To Have Home Trade-In Company, Inc. Repurchase The Home:
1.  Buyer must inform Home Trade-In Company, Inc. in writing of election to have home repurchased
2.  Buyer must list the property with X Company
3.  Buyer must first purchase a substitute dwelling for not less than 75% of the repurchase price of the first home.
4.  Substitute dwelling must be purchased through X Company  for the full selling side commission for sale of the substitute dwelling
So here are some personal thoughts…
X Company gets a 1% fee of the sales price up front paid by the buyer.  Can you picture the buyer's agent asking the seller to pay that fee and taking money from their net?    
Isn't X company already representing the seller?  How is that representing the seller the best fiduciary way?   The property has to be listed by X company and be sold by X company.   Dual agency is almost a guarantee.  
If X company is representing a buyer are they only going to show homes listed by their firm?  It does not sound like the guarantee can be purchased if it listed with another firm, but without more specific details, it’s hard to know.  
Sounds like ONLY single family homes qualify and then add… the price range of $75K to 600K and …the primary residence factor.  You must still list your property with X company and purchase another home listed with the same firm not less than 75% of the value.  What happens when the company does not have any homes listed that meets your criteria?
What happens if the value of the home has increased or decreased in the time of the trade in?  
Is a listing commission paid?  If not, what incentive does the agent have to get your home sold if they could work another client and make a commission and a listing and a sale.  
Will the agent be motivated to spend any time or money marketing your home or are they going to stick a sign in the ground, put it in the MLS, and pray?
Just some things to consider, so you tell me..  What do you think?

David Phillips

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