THE DISENGENUOUS GUARANTEE
By Robin Shapiro
Registered representatives on Wall Street (previously known as “stock brokers”) cannot guarantee performance. Here’s why: investment performance is inherently uncertain and influenced by various factors such as market conditions, economic trends, and individual risk tolerance. Consequently, registered representatives must follow regulations and adhere to ethical standards which prohibit them from making promises or GUARANTEES. Admittedly, real estate rules of conduct are different for brokers. However, maybe the rules shouldn’t be different?
In the Rockaway real estate market, some brokers SEEKING NEW LISTINGS have advertised a “GUARANTEE ALL CASH PURCHASE OFFER” for homes (although I have not seen this in recent weeks). Do you think such a broker will have the BEST offer for every property – and for CASH (no mortgage) – without seeing the property? What if the property has multiple violations, serious structural problems, etc.? What if the property happens to be prohibitively expensive (worth millions)? Do you think that the guaranteed offer will be a competitive market price – even for a mint property?
Anybody requesting such an offer in response to the advertisement will most likely receive a safe, below market number. Do you think that the advertising broker really wants to buy the house? Or do you think that this broker just wants to obtain the new listing? Call me. Love, Robin.
