The 72 Sold real estate program, known for promising fast home sales within 72 hours, has recently faced increasing scrutiny. Allegations of misleading business practices, legal claims from customers, and regulatory challenges have put the company’s future in question.
As the lawsuits continue to develop, potential outcomes could reshape not only the way 72 Sold operates but also impact the broader real estate industry.
In this blog, we’ll explore the key allegations, examine the legal cases, and discuss the future for 72 Sold and its clients.
What is 72 Sold?
72 Sold is a real estate marketing program that focuses on selling homes quickly, typically within 72 hours. The company differentiates itself from traditional real estate services by organizing highly competitive, short showing periods to encourage buyers to make quick offers.
While this model is designed to create urgency, many question whether it delivers the promised results in all cases.
- Founder: Greg Hague
- Key promise: Sell homes in 72 hours or less
- Strategy: Short, competitive showings aimed at driving up buyer offers
- Appeal: Targeting sellers who want fast and efficient property transactions
How Does the 72 Sold Program Work?
72 Sold markets itself as a faster alternative to traditional real estate methods by creating an atmosphere of urgency for buyers.
By showcasing homes during short 90-minute showings on weekends, the program hopes to generate multiple offers quickly.
This model can be attractive for sellers who need to sell fast, but it also limits the exposure time of the property, which could lead to missed opportunities.
- Exclusive Market Authorization Agreement used to pre-market the home
- 90-minute open house showings to build competition among buyers
- Aim: Receive offers within 72 hours of the home being shown
What Allegations Have Been Made Against 72 Sold?
There are numerous allegations against 72 Sold, primarily revolving around misleading marketing and unsatisfactory results.
Sellers have voiced complaints that the company’s promises of higher prices and faster sales often don’t materialize.
Regulatory concerns have also emerged, particularly around whether 72 Sold operates as a fully licensed real estate brokerage in certain states, which could lead to significant penalties.
- Misrepresentation: Claims that the program doesn’t always lead to higher offers
- Customer dissatisfaction: Complaints about lack of control over the listing price
- Regulatory concerns: Investigations into licensing compliance, especially in Colorado
What Legal Claims and Court Cases Involve 72 Sold?
Several lawsuits have been filed against 72 Sold, claiming that the company misled consumers with exaggerated promises and failed to disclose key information.
These court cases involve accusations of false advertising, breach of fiduciary duties, and potential violations of real estate regulations in certain states. Regulatory bodies are investigating whether the program meets the required licensing standards for real estate services.
- Misleading advertising: Allegations that marketing overstates success rates
- Licensing issues: Questions over whether 72 Sold has operated without proper licenses
- Regulatory investigations: Ongoing probes by state real estate boards
How Does 72 Sold Compare with Traditional Brokerages?
When comparing 72 Sold to traditional real estate brokerages like eXp Realty or Opendoor, several key differences arise, primarily in their approach to marketing, speed, and costs.
Traditional brokerages generally offer longer marketing periods and use the Multiple Listing Service (MLS) to give homes more visibility, while 72 Sold aims for a rapid sale within a 72-hour period.
Here’s a detailed comparison of how 72 Sold stacks up against traditional brokerages in key areas:
| Feature | 72 Sold | Traditional Brokerages (eXp Realty, Opendoor) |
| Sales Timeline | Quick sale within 72 hours | Typically weeks to months for optimal exposure |
| Listing on MLS | Optional, not standard | Standard, included in most broker packages |
| Commission Structure | Negotiated with individual agents | Standard commissions (typically 5-6%) |
| Marketing Approach | Compressed marketing via short showings | Comprehensive marketing over an extended period |
| Control over Listing Price | Limited, agent heavily involved | Seller usually has more control over listing price |
| Buyer Exposure | Limited due to short showing window | Broad exposure through MLS, online platforms |
| Flexibility in Negotiation | Less flexible due to time constraints | More negotiation time, especially for higher offers |
| Focus | Speed and urgency to close quickly | Maximizing price and broad market exposure |
| Costs | Can be high due to variable commissions | Standardized commission, sometimes lower |
| Additional Services | Typically fewer added services | Full range of services (staging, repairs, etc.) |
Key Takeaways:
- Speed vs. Price: 72 Sold emphasizes speed, with the goal of selling homes quickly, but this may come at the expense of higher offers. Traditional brokers, on the other hand, typically prioritize market exposure to achieve the best price for the property.
- Commission Structure: 72 Sold’s commission rates can vary depending on the agent, while traditional brokers usually follow a more predictable commission structure.
- Control: Sellers using traditional brokerages often have more control over setting the listing price and negotiating offers, whereas 72 Sold may exert more influence over these decisions.
What are the Commissions and Fees Associated with 72 Sold?
Unlike flat-fee services like Houzeo, 72 Sold’s commission structure is negotiated between the seller and the affiliated real estate agent.
The program itself doesn’t charge a fee, but agents working through 72 Sold often require a standard commission similar to traditional brokers.
In some cases, sellers report paying both the listing and buyer’s agent commissions, which can add up to 5-6% of the home’s selling price.
One of the major criticisms of 72 Sold is that despite marketing itself as a unique, faster solution, the costs to the seller are sometimes lower than those of traditional methods.
Sellers should carefully review commission agreements before signing with 72 Sold, as fees can vary depending on the agent and the property’s location.
What Licensing Issues has 72 Sold Faced?
One of the most pressing legal challenges for 72 Sold involves licensing issues. In states like Colorado, regulatory bodies have scrutinized whether 72 Sold and its affiliated agents meet the requirements to operate as a licensed real estate brokerage.
Operating without proper licensing could result in fines, sanctions, or even the suspension of the company’s services in those states.
These licensing issues form the basis of some lawsuits filed against 72 Sold, where plaintiffs argue that the program was marketed as a licensed real estate service when, in reality, it may not have met the legal requirements to operate in certain jurisdictions.
This has led to ongoing investigations and regulatory inquiries that could reshape how the program operates nationwide.
What Legal Responsibilities Does 72 Sold Have to Its Clients?
Like any real estate service, 72 Sold has a fiduciary duty to act in its client’s best interests. This includes being transparent about the home-selling process, commission structures, and the potential outcomes of their sales.
Lawsuits against 72 Sold allege that the program has failed to meet these responsibilities, with clients complaining of hidden fees, lack of transparency regarding listing prices, and unmet promises of faster sales.
Real estate sellers working with 72 Sold should ensure they fully understand the terms of their agreement and have clarity on all associated costs. In particular, clients should look for transparency around pricing strategies, as this is a key area of dispute in the ongoing legal battles.
How Can Home Sellers Protect Themselves Legally When Using 72 Sold?
Home sellers should carefully review any agreements with 72 Sold to protect themselves, paying close attention to commission structures, listing prices, and sales timelines.
Consulting with a real estate attorney before signing any contracts can help sellers avoid potential disputes. Additionally, sellers should ensure they retain control over key decisions, such as setting the listing price, to avoid situations where they feel under-compensated.
Home sellers can also protect their interests by asking for clarity around the marketing process and by requesting detailed explanations of how 72 Sold’s approach differs from traditional methods. Having all the terms clearly spelt out can help mitigate the risk of future legal challenges.
What Lessons Can Real Estate Brokers and Agents Learn from 72 Sold?
The legal challenges facing 72 Sold offer important lessons for real estate brokers and agents. One of the most critical takeaways is the importance of transparency in communication.
Over-promising results, whether in terms of price or speed, can lead to dissatisfaction and legal issues down the road. Brokers must ensure that their marketing materials accurately reflect the services they provide.
Moreover, regulatory compliance is crucial. Agents working in the real estate industry must maintain up-to-date licenses and ensure that their operations align with state laws.
The lawsuits against 72 Sold highlight non-compliance risks and underscore the need for businesses to follow ethical and legal standards.
Conclusion
The ongoing legal challenges facing 72 Sold raise important questions about the company’s future and the real estate industry as a whole.
As lawsuits unfold, the company’s ability to continue operating under its current model may be affected, especially if regulatory bodies impose fines or restrict its services.
Sellers and real estate professionals should stay informed about the outcomes of these cases to understand how they could impact both the real estate market and consumer protection.
FAQ
What is the main issue with 72 Sold?
The primary issue involves allegations of misrepresentation and regulatory challenges.
Has 72 Sold responded to the allegations?
The company has not made extensive public comments but continues to operate amid the lawsuits.
How do these lawsuits affect real estate customers?
The lawsuits could impact the reliability and trustworthiness of 72 Sold’s services for sellers.
Is 72 Sold a legitimate real estate program?
While the program is legitimate, it faces significant legal challenges that question its practices.
Can home sellers still use 72 Sold amid the lawsuits?
Yes, but sellers should exercise caution and review all terms thoroughly before proceeding.
What legal rights do home sellers have in this situation?
Sellers have the right to transparency and fair representation under real estate laws.
What steps can real estate brokers take to avoid legal issues?
Brokers can avoid legal issues by maintaining regulatory compliance, transparency, and ethical business practices.
