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Which Estate Agent Setup Is Right For Me?

If you’re trying to sell your home do you prefer to make use of multiple estate agents or select one and stay with the same one? This is a frequent question and it’s tempting to believe it’s true that having the presence of two (or several) heads is more effective than just one. But, it’s not so simple as that. This article will go over the elements you should take into consideration when making a decision between sole multiple or joint agents.

1. What does the term sole, joint sole, and multiple agents actually refer to?

Sole agents are the same thing an estate agency that is solely owned by one person is the sole one with the authority to market your home. If you sign to a sole agency you usually sign an exclusive agreement lasting for 12 weeks or more. If you decide to sell your home in this period – even if the agent failed to locate a buyer, then you must pay the commission to the agent.

Alternately, you can hire multiple agents. In this scenario, the different firms (three at least) will compete with each other for the chance to sell your home, and only the one who succeeds will be awarded the commission.

A compromise between these two options is to select Joint sole agents. This is the process of selecting two (or maybe three) companies that work in a more cooperative manner. Most firms accept to split commissions between the three of them, with a larger portion going to the company which guarantees the sale. A typical situation where joint sole agents could be ideal is when selling a property in a prime location where the seller could decide to employ an agent from the local area and a top-quality national agency that will market to buyers with high-end tastes in London or elsewhere.

2. What are the advantages and disadvantages of employing an agent that is only one?

The main benefit of staying with a single agent is the cost. Because the agent won’t be trying to sell your home (at at least during the time frame of exclusivity) it is likely to accept lower rates (typically 1-1.5 percent, with VAT). Using a single agent also makes life simpler – you don’t need to co-ordinate viewings from multiple firms, provide several sets of keys, complete multiple anti-money-laundering checks, and so on.

On the other hand, listing with one agent will result in getting less attention from potential buyers which means you’ll have to wait longer to sell. It’s less so as compared to the past because of the growth of major property portals. The majority of agents will post their listings on Rightmove or Zoopla that will mean a greater number of potential buyers are watching your property. However, these portals can’t replace an agent who has a solid list of potential applicants (potential prospective buyers). We believe that 50% of potential buyers for your property are likely to originate from the current list of potential buyers of the agent, not from people who view it on the internet. Another thing to keep at heart is the fact that there is no flexibility when the agent fails to be a great performer then you’ll be bound to them for the length of the contract. Even if you switch to a different agent , or even sell on your own in the time frame, you’ll still be responsible for the fee of the original agent. It is important to study the contract thoroughly before signing it: it’s not uncommon agents to provide sole selling rights as long as an entire year.

If the agent is found to not be able to complete a satisfactory job, you will remain with them for the length of the contract. If you decide to switch to a different agent , or even sell the property yourself in this period, you’ll still be responsible for the fee of the agent you hired.

3. What are the advantages and disadvantages of employing several agents?

One benefit of employing multiple estate agents is that they will be competing against each other for the commission. This means they may be more efficient and quicker to sell your house as opposed to a single agent with the protection of a long exclusivity contract. Another benefit is that every agent has an individual list of prospective buyers. An excellent estate agent will provide the details of your home to potential buyers who may not have considered searching within your area thus they will not discover it on online searches.

The biggest drawback is price: fees for multi-agents generally double the amount an individual agent will cost (2.5%-3% , plus VAT). However, if you can sell your product faster or at a higher cost by using more agents, you may succeed regardless of whether the commission you pay for is higher, but you have take into consideration the expense against the benefits. Another disadvantage is the inconvenience of dealing with multiple agents. While their competitive nature can aid in the process of securing a sale they could also have the agents urging you to accept a lower price made by their competitors rather than waiting to watch the sale pass to a different agent.

4. What is joint sole agent?

Joint sole agency contract is typically used for higher-end or unusual properties. For instance a country home that is of the highest quality in the Cotswolds could be sold by an agent in the area, but also with a large national company that could generate interest through media coverage, and also by targeting foreign investors. If you are looking for a more standard property the approach is not likely to work.

The cost paid by joint sole agents will likely be more than one agent, but it will be lower than the fee for multiple agents. In general, the two agents will have a mutual agreement to split the commission due to the fact that they are working as a team, not competing. Even though the winning selling agent could receive a higher percentage of the commission but there is the possibility that both agents will do less work knowing that they’ll still be paid in the event that the other company makes the sale.

5. Which is the most effective strategy for me?

There isn’t a universal solution. It’s based on many aspects: the distinctiveness to the house, its condition of the market and whether you’re seeking to sell in a hurry or are able to sit and wait for the most attractive offer. For many sellers opting for a single agent from the start is a great option in the event that they can negotiate an affordable fee and an exclusivity time that isn’t too long. After an agent has made the initial attempt to sell your house and has exhausted their list of contacts and has lost interest, they could and concentrate on more recent listings. In general, high-street agents sell half of the properties they have on their books. If you’re unsuccessful using a single agent, think about relisting with a few Barry estate agents.