What is the Proctor Guaranteed Sale Program?
The Real Estate Council of Alberta recently published an article on what the guaranteed sale program is and whether consumers should be wary.
Their position is that ‘wary might not be the best word’.
Here is some history on this sales tactic:
The Guaranteed Sale Program was first developed by Canadian real estate agent and now real estate coach, Craig Proctor. See the video from Proctor about his program.
It was developed, not to help the consumer get away from carrying two mortgages if they buy before they sell, but to pad the pocket of the agent offering his sales tactic.
Not sure what I mean? Here are some details from the video below that we have posted below regarding the program:
- The purchase price of the home will be 5% below market value
- Commissions and all other costs associated with the sale will come off of the net value (In Calgary, that is a lot more than just 5%, it’s closer to 9%)
- You have to buy your next home through the listing agent and it has to be one of their listings
- According to the program it will only work for a sale price below the area’s average (In Calgary that would be about $500,000 and below)
Towards the end of the video he lists the benefits to the real estate agent, one of which being ‘double ending a ton of your own listings’.
This means the agent would be representing both the buyer and the seller in the same transaction.
After looking at this program, the only person that stands to benefit seems to be the real estate agent. This is a sales tactic designed to get you, the real estate consumer, to pick up the phone and call that sales person to inquire about the program and about selling your home.
Other Advice From RECA
Now RECA does mention to read the details of the program and to make sure that you understand those details before you sign any listing agreement.
They’ve informed you that a real estate brokerage has to be the one to offer the tactic and not the real estate agent.
They’ve also informed you that the brokerage wants to minimize their risks associated with buying your home.
Advice From us at Redline Real Estate
Definitely read the details of this style of agreement and the fine print, do not miss anything as it pertains to the sale of your home.
If you can afford to sell your property for up to 10% less than what you have it listed for, then go ahead and follow through with that style of program.
In a market that sees most homes sell for between 2-3% off of the asking price, as advisors we would not be doing our job if we didn’t tell you how bad of a deal that would be for you financially.
Check out this article to learn more on this tactic.
Here’s the Proctor Guaranteed Sales Tactic Video I Mention Above
*happily edited from the original version so as to be in compliance with our regulator the Real Estate Council of Alberta