If you’re trying to sell your house do you prefer to employ multiple estate agents or select one and stay with the same one? This is a frequent question and it’s tempting to believe there are more heads are better than one. (or greater) heads is more effective than just one. But, it’s not so simple as that. This article will discuss the aspects you need to consider when deciding between sole, multiple or joint agents.
1. What exactly do the words sole, joint sole, and multiple agents actually really mean?
Sole Barry estate agents are only that: an estate agency that is the sole one with the authority to market your home. When you sign to a sole agency you usually sign an exclusivity contract, usually lasting 12 weeks or longer. If you decide to sell your home in this period – even if the agent failed to find a buyer – you are required to pay the commission to the agent.
You can also instruct several agents: in this scenario, the different firms (three at least) will compete with one another to market your home, and only the agent who is successful will receive the commission.
A compromise between these two options is to select Joint sole agents. This is the process of selecting two (or maybe three) firms that operate with each other on a cooperative basis. Most firms accept to split commissions between the three of them, with a larger portion going to the company who is responsible for the sale. A typical situation where joint sole agents may be ideal is when selling a country home and the seller may select to use 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 having one agent?
The primary benefit of staying with a single agent is the cost. Since the agent isn’t trying to sell your home (at at least during the time frame of exclusivity) They are more likely to accept lower fees (typically 1-1.5 percent, which is a plus 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 could result in that you will be able to reach fewer buyers which means you’ll have to wait longer to sell. It’s less so as compared to the past due to the growth of large property portals. Most agents list their properties on Rightmove or Zoopla that means that there are more potential buyers are watching your property. However, these portals do not replace an agent with a strong list of potential applicants (potential prospective buyers). We estimate that 50% of potential buyers for your property are likely to originate from the current list of applicants for the agent and not those who view it on the internet. Another thing to keep to be aware of is inflexibility when the agent fails to be a great performer and you’re bound to them for the entire duration of the contract. Even if you switch to a different agency or decide to sell your property privately in this period, you’ll remain liable 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 that last 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. Even if you switch to a different agency or decide to sell your property privately in this period, you’ll still be responsible for the agent’s fees.
3. What are the advantages and disadvantages of having several agents?
The benefit of having multiple estate agents is that the companies will be competing against one another to earn the commission. This could mean that they perform more efficiently and speedier to sell your house than an individual agent that has the protection of a long exclusivity contract. Another benefit is that every agent has an individual list of prospective buyers. An experienced estate agent will forward information about your property to potential buyers who may not have thought of looking for properties in your specific area, thus they will not locate it in searches on the internet.
The main drawback is the price: fees for multi-agents generally double the amount an individual agent will cost (2.5%-3 percent plus VAT). However, if you are able to sell faster or at a higher cost by using several agents, you might be able to make a profit regardless of whether the commission you pay for is higher, but you have be aware of the costs in relation to the value. Another disadvantage is the inconvenience of dealing with multiple agents. While their competitive nature could aid in securing sales, it could also lead to the agents urging you to accept a lower price made by their competitors instead of waiting to watch the sale pass to a different agent.
4. What is joint sole agent?
The joint agency contract is typically used for the most unusual or expensive properties, for instance a luxury country home in the Cotswolds could be sold by an agent local to the area but with a large national company that could generate interest through publicity and by targeting investors from overseas. For properties that are more commonplace the approach is not likely to prove beneficial.
The cost paid by joint sole agents will likely be more than one agent, but it will be lower than that 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 togetherand not competing. While the agent who is successful in selling could receive a higher percentage of the commission however, there is a possibility that both agents will do less work knowing that they’ll still receive a payment in the event that the other company makes an agreement to sell.
5. Which one is the best for me?
There isn’t a universal solution. It’s contingent on many factors, including the exclusivity to the house, the condition of the market and whether you’re looking to sell quickly or are able to be patient and wait for the best price. For many sellers choosing a sole agent from the start is a great option in the event that they can negotiate the best price and an exclusivity duration that isn’t too long. Once the agent has completed the initial effort to sell your house and exhausted their list of contacts and has lost interest, they could and concentrate on more recent listings. Most high-street agents sell half of the properties they have on their books. If you’re not successful as a sole agent you might want to consider switching to multiple agents.
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