ERA® Sellers Security® Plan: Our Secure Timely Method For Selling Your Home
Sellers Security® Plan Frequently Asked Questions
1–– How will I know if my home has been accepted into the SSP program?
Until and unless you receive a written Real Estate Sale Contract from ERA Franchise Systems LLC and you sign the Real Estate Sale Contract, your home is not accepted into the SSP program.
2–– What does “absorption rate” mean?
Absorption rate is the approximation of how long it will take your home to sell based on current market data, and it is measured in months. Months of inventory is also used to mean the same thing.
3–– What will automatically disqualify my property from the SSP?
- An absorption rate of more than fifteen (15) months, as reflected in current market data. This means that it could conceivably take longer than 15 months for the current amount of comparable active listings in your marketplace to sell.
- Being an employee, family member, relative or independent contractor associated with Realogy, ERA Franchise Systems LLC or its franchises.
- Not having at least 20% equity in your home, having liens filed against the property or not being current on your mortgage.
- Not purchasing your next home through ERA Real Estate within the agreed upon timeframe (exceptions are military personnel moving to base housing, sellers purchasing new construction through an ERA®-approved builder, or sellers referred to Member Broker by an ERA-approved health facility admission director).
- Your home having a serious location concern, (including but not limited to busy road, high tension wires, railroad tracks, etc.) as determined by ERA Franchise Systems LLC.
- Your home having structural defects.
- Your home having an appraised value that is below $50,000. Additionally, homes valued in the top 20% of sales per prior 12-months MLS data for town, city, or zip code, or exceeding $750,000 do not qualify. Maximum appraised values are based upon local statistics.
- Rental or investment properties, coops, multi-family homes, or mobile homes do not qualify.
4–– If an offer is extended to me, from whom will that offer come? My ERA Broker?
No. If an offer is extended to you for the purchase of your home, that offer will come from ERA Franchise Systems LLC, not your ERA Broker. Each of our offices are independently owned and operated.
5–– If an offer is made to purchase my house, what will be the amount of that offer?
If your application meets the initial criteria to move to the next phase of evaluation, there will be one independent appraisal done by an appraiser selected by you from a list provided by ERA Franchise Systems LLC. If an offer is made, the offer amount will be anywhere from 80 percent to 90 percent of the appraised value of your home depending upon the absorption rate. For those homes accepted with absorption rates of 0-9 months, ERA Franchise Systems LLC will make an offer of 90% of the appraised value of the home. For those homes accepted with absorption rates of between 10 and 15 months, the following offer amounts will be applied:
- 0-9 months = 90% of appraised value
- 10 months = 88% of appraised value
- 11 months = 86% of appraised value
- 12 months = 84% of appraised value
- 13 months = 82% of appraised value
- 14 months = 80% of appraised value
- 15 months = 80% of appraised value
6–– If an offer is made on my home, when can I expect to close with ERA Franchise Systems LLC?
If the home was accepted into the SSP program with an absorption rate of 0 to 9 months, and you accept the offer of ERA Franchise Systems LLC, you can expect to close in 180 days from the date of the completed application. This is a standard six-month listing contract.
If the home was accepted into the SSP program with an absorption rate of between 10 and 15 months, and you accept the offer of ERA Franchise Systems LLC, you can expect to close in 270 days from the date of the completed application. This allows your sales associate an additional three (3) months to find another qualified buyer, who may offer you more money!
|Absorption Rate||Offer Amount||Listing Period|
|0-9 months||90%||180 days|
|10 months||88%||270 days|
|11 months||86%||270 days|
|12 months||84%||270 days|
|13 months||82%||270 days|
|14 months||80%||270 days|
|15 months||80%||270 days|
7–– What will I be required to do in order to participate in the SSP program?
- Agree to implement the ERA® Gold Star Property marketing program.
- List your house with an ERA Broker exclusively for an amount of time determined by the absorption rate at the time of application (either 180 days or 270 days), not to exceed any prior list price.
- Buy another house through a designated ERA Broker (exceptions are military personnel moving to base housing, sellers purchasing new construction through an ERA-approved builder, or sellers referred to Member Broker by an ERA-approved health facility admission director).
- Pay for the appraisal, home inspection and buyer protection plan.
- Seller will maintain the property, utilities, mortgage payments and homeowner’s insurance until time of closing of title with ERA Franchise Systems LLC.
- In addition to the home inspection required prior to the ERA Franchise Systems LLC offer, seller must provide prior to the ERA Franchise Systems LLC closing at seller’s sole cost and expense:
- Clear Radon Analysis Report.
- Clear Septic and Well Report.
- Clear Wood Boring Insect Certification.
- Certificate of Occupancy on Sellers’s Property (where applicable).
- An environmental and pool inspection if required by ERA Franchise Systems LLC.
- Updated Survey.
8–– Am I required to buy a new home listed with an ERA® Broker?
No. You are only required to purchase your next home through a broker designated by ERA Franchise Systems LLC and close on the property during the pre-determined listing period as per the absorption rate at the time of application. The home does not need to be an ERA® listing.
9–– Is my house still on the market even if I accept the ERA Franchise Systems LLC offer?
Yes. That’s the beautiful part of the plan. We give you maximum market exposure for you to sell your house at the best possible price.
10–– Am I required to submit an application immediately upon listing my house with ERA Real Estate?
No, one of the benefits of listing with ERA Real Estate is this program remains an option for you to use at a later date. Also keep in mind that by listing with ERA Real Estate, this program can be used by a prospective buyer who needs to sell their current home to buy yours!
11–– What expenses will I have?
Your cost for participation in the SSP program will include the same expenses due in any other home sale, including the sales commission and other closing costs customary in your market area.
In addition, other expenses include:
- A buyer protection plan, an independent appraisal and home inspection. In the event of inspection cancellation or a no-show, a fee may be charged. This is to determine if ERA Franchise Systems LLC can provide an offer to you.
- The cost of the title commitment, survey, home warranty, wood boring insect certification, well and septic test, pool and any environmental inspections (if requested) prior to closing with ERA Franchise Systems LLC.
- Repairs or improvements that may be required by ERA Franchise Systems LLC as a condition for purchasing the home.
12–– How much can I expect to pay for the appraisal and home inspection?
The appraisal is $649.00 and the home inspection is $349.00.
13– Why is the cost of the appraisal required by the SSP Department more expensive than “typical” appraisals?
Like most other corporate buyout programs, a more lengthy analysis is utilized. Unlike a bank or refinance appraisal where only sales are scrutinized, the guidelines of the “buyout” appraisal also require the appraiser to measure the impact, if any, of current listings, new construction, REOs, and market trends. A third party is employed to provide the approved appraiser list and monitor performance. ERA Franchise Systems LLC does not receive any part of the appraisal fee.
Conditions and limitations apply: including but not limited to: seller and house must meet specific qualifications, and purchase price will be determined solely by ERA Franchise Systems LLC, based upon a discount of the home’s appraised value. Additionally, a second home must be purchased through a broker designated by ERA Franchise Systems LLC.