The details of a guaranteed sale program can vary depending on the agent and the brokerage they work for, but they generally involve the agent offering a predetermined price for the home if it does not sell within a specified timeframe. The agent may also offer other incentives, such as waiving their commission, covering some or all of the closing costs, or providing marketing services to help sell the home. When a guaranteed sale agreement is entered into by a licensee or other person on behalf of or to the benefit of a licensee, that licensee shall deposit into the brokers seperate trust account not less than 5% of the total amount that may be payable under the guaranteed sale agreement. Refer to the Real Estate Act of Alberta section 20 for specific details.
It's important to carefully review the terms of a guaranteed sale program before entering into any agreement with an agent. While a guaranteed sale can provide some peace of mind for homeowners who are worried about their home sitting on the market for an extended period, it's important to ensure that the terms of the program are fair and that the offered price is reasonable for the property's value.
It's also worth noting that guaranteed sale programs are not suitable for every situation. In some cases, it may be more beneficial for the homeowner to work with an agent who has a strong track record of successfully selling homes in their area rather than relying on a guaranteed sale program. As always, it's important to do your research and carefully consider your options before making any decisions related to selling your home.