On Friday, August 29, 2014 11:14:51 PM UTC-4, micky wrote:
On Fri, 29 Aug 2014 07:30:22 -0700 (PDT), trader_4
wrote:
I agree that if you agreed to the deal, received the givt certificates,
then didn't use one of their referal brokers, then the company has a
legitimate claim against you. But it's not for some astronomical
amount. What their damages would be is whatever referal fee they would
have gotten from one of the realtors for the referral. No reason to
believe that's much. I would guess it might be $500, $1000 tops.
Well, it would depend on what it said in the contract. There could be
liquidated damages, damages that the courut need not calculate because
they are specified in the contract. I suppose there is a limit to how
high those can be, in the court's opinion, based on the rules of state
law and precedent, but maybe they only do business in state's where that
is not a problem.
Yes, I agree, it could provide for liquidated damages.
What do you think any realty firm would pay for a referal?
So, yes, they could sue you for that, whether they would when you're
located somewhere across the country, I tend to doubt that.
The biggest flaws I see in all this a
1 - No mention of what exactly the gift certificates are. That no
clear examples are even given is a red flag. They could turn out to
I'm pretty sure the salesman and customer would know before any papers
were signed. Especially if, as in my other post, they're not actually
going to give the gift cards. Then they can offer the best companies'
cards.
My point is that if these are great, really useful gift certificates,
I find it odd that in all their sales puffery on the website they don't
say or give examples of what they actually are.
be something with little value to you. Also those certificates are not
handed out upfront, apparently you get some each year for four or five
years.
One card each year for 5 years, unless you're in the lowest price home
that's eligible then it's 100 a year for 3 years.
2 - You don't know what realty firms they would have participating say
5 years from, when you do want to sell your house. If I knew that a
couple of the respected local firms would be the choice, then I would
consider the deal. That you don't know what the situation will be years
down the road is a big problem.
But it's true, like in the hamburger skit. "I'll give you so much money
now for a hamburger tomorrow", or how does that saying go? Whatever it
is, a lot of people will bite.
IDK, it would be interesting to see how many people sign up. If I knew
what exactly the cards were, for example that I was getting VISA gift
cards, and I could pick the realty firm today so I know who I'm going
to wind up with, I would seriously consider the deal and probably do it.
If it's I get some gift cards,
TBD in the future, I get to pick from whatever
realty firms they have someday in the future, which might be just
one that I don't want, then forget it.
From a business model, something also doesn't smell right. This is a
business that sucks up capital. The company apparently has to shell out
dollars for all those gift certificates upfront. And apparently they
collect a referal fee only when the house is sold, which could be 5,
15 or 50 years later. What kind of business model is that? That's why
I'll bet the gift certificates aren't something like a VISA, but something
they are getting deeply discounted and likely of questionable value to me.
I guess it's also possible that the realty firms involved are helping
pay the cost of the certificates, but I think that would be a hard sell.