The Disingenuous Guarantee

By Robin Shapiro

Registered representatives on Wall Street cannot guarantee performance. Here’s why: investment performance is inherently uncertain and influenced by 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. Perhaps the rules shouldn’t be different?

In Rockaway, some brokers SEEKING NEW LISTINGS have advertised a “GUARANTEE CASH PURCHASE OFFER.” 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? 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?

Palm Sunday is this Sunday, April 13. Passover begins at sunset on Saturday, April 12 and ends at nightfall on April 20. No work permitted for the observant on April 13, 14, 19 and 20. Call me. Love, Robin.