How Many Estate Agents Should A Vendor Instruct?

When you sell your home, you have to decide who to sell your property with. You also need to decide how many estate agents to use. In Particular, should you get one, two or more to work for you?

What you decide will affect how much you pay in fees — and how much you get for your house.

Here at Concentric Sales & Lettings we are clear and transparent with our terms and conditions when dealing with our clients. We are property experts as apposed, to standard non legislative agents. As Warren Buffett states:- “Wall Street is the only place that people ride to in a Rolls- Royce to get advice from those who take the subway”

Selling your home is one of the biggest milestones in your life, so why would you not look closer into whom and what your agent actually does; do they actually justify their fee?

Here at Concentric we are clear with our terms, so today I would like to discuss terms of contact for sales. These are things you need to look into before signing your terms of business with any agent.

Sole Agency

This is the preferred arrangement from a standard estate agent’s point of view because it gives them exclusive right to market your property. This should also be your preferred arrangement because as long as the contract term is short, the estate agent will be motivated to get out there and find you a suitable homebuyer.

Joint Sole Agency

This is when you instruct two estate agents to market your property at the same time. The commission will be shared between the agents regardless of who finds you a buyer.

At first it may seem like a good idea having more than one agent working for you however, there are some serious drawbacks to this arrangement: The agents are less motivated because there’s always the possibility that “the other agent” will find the buyer, thus allowing one agent to make his commission without having to do very much. If both agents have this mentality you’ll find yourself in a position where no one is focusing on finding you a buyer. Because agents are less excited about being instructed on a “Joint Sole” basis (compared to “Sole Agency”) it is harder to negotiate their terms of business. However if two agents are instructed the probability of achieving the right price would be higher.

In Stewart Stabands article in Property Investor Magazine he states “My Friend, along with his dad, was put in charge of selling his uncles house. Unbeknown to him his dad had invited an agent around to value the house. The agent was swiftly instructed and within 24 hours had found a buyer. It wasn’t until four weeks later I found out that it had completed. Unfortunately, after some investigation it turned out that the agent was an out of area agency that had down valued the house. The house was bought by an investor and flipped into auction for £180k profit”

Multi Agency

This is when you instruct lots of agents but the one that finds you a buyer, takes all the commission. This is not an option we would ever advise you to explore: This is an expensive way to sell. Having your house on with lots of agents smacks of desperation and often causes buyers to become suspicious of (or dismiss) your property.

Agents want exclusive rights to market your property and will prioritise the sale of homes (on which they are instructed as “Sole Agent”) over yours.

We at Concentric are happy to work with you to sell your property on either sole agency or multi agency. We are fully committed to providing our clients with the correct advice and working with you to achieve your objective with regards to selling your property and achieving the price you need to move on. If you would like to discuss the sale of your property please call 0151–928–9280 steven.latham@concentricproperty.co.uk

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