As part of our commitment to offering a totally transparent service to all of our customers we believe that it is important that you understand some of the more confusing elements of selling your home or property. It is also important that we tell you what we believe are very important considerations when selling a property today and the information and guide below should give a good start to understanding how to best position yourselves to sell your property with as little fuss as possible at what can be for some, a very stressful time.
ESTATE AGENTS CONTRACTS EXPLAINED
Sole agency is the most common estate agent contract. This basically means that you instruct only one Estate Agent to sell your property and pay a fee if they successfully find a purchaser who subsequently proceeds to exchange of contract stage. However, if you were to find a buyer privately or sell your property to a friend or relative you would usually not have to pay Estate Agency fees.
Multiple agency, as the name suggests, means that more than one Estate Agent is acting for you in marketing your property and are in effect in competition with each other. Only the Estate Agent which sells your property is entitled to a fee however the nature of the instruction means that there is a greater possibility that a “commission dispute” could prevail between the Estate Agents involved over who actually introduced a purchaser or who ultimately effected a sale. The commission rate for multiple agency instructions is traditionally considerably higher than that of sole agency instructions.
Joint Sole Agency
Joint Sole Agency means that you have two Estate Agents working together to sell your property and if a sale is agreed which successfully proceeds to contract stage, each Estate Agent receives half of the agreed total fee irrespective of which agent introduced the purchaser. The advantage of this arrangement is that you have more than one Estate Agent working for you to help obtain the best possible sale price but without the risk of commission disputes which can occur in multiple agency instructions. Joint Sole Agency is usually more expensive than Sole Agency but not usually as high as Multiple Agency instructions.
Sole Selling Rights
Sole Selling Rights means that your estate agent has exclusive selling rights to sell your home during the term of the contract you have with them. In this event you would pay the Estate Agency a fee if the property sells, even if you were to sell it privately for instance to a friend or work colleague.