Estate Agent Contracts
After you have selected an estate agent, it is important to review their contract. If you sign a sole agency contract, you will typically be required to remain with that agency for a period of 8 to 12 weeks, regardless of their level of performance.
We believe in a flexible approach to contracts. Before signing any agreement, we discuss our terms of business with clients in great detail to ensure they understand everything, and then we put everything we've discussed in writing in clear, jargon-free language to prevent any unpleasant surprises.
We also don't require clients to commit to a minimum length of time. They are free to leave at any time if we don't meet their expectations. Furthermore, we will only market a client's property once they have signed an agreement allowing us to do so. Our clients stay with us because they want to, not because they have to.
On the other hand, going for a multi-agency contract can result in a higher fee and the impression that the agencies are not motivated to compete with each other to sell your property.
So many consumers place estate agents on a pedestal. However, if you are not completely satisfied, you should be free to go somewhere else should you feel threatened or bullied. We can’t tell you the number of times we have had to mentor a client to deal with this type of behaviour.
If you speak to any other agents, ensure the agent covers every detail with you. Ensure you understand the terms (especially the length of the agreement), Know exactly what fees you will be paying, and remember, less is not always best (i.e. the fee).
A lot of people are under the impression that by having multiple estate agents trying to sell your house will mean you sell quicker as it makes the agents work harder. However, the reality is it can actually cause you more problems.
A lot of agents also don’t work as hard on multi-agent contracts because it can be very demoralising – they are likely to work hard for a client who they know is going to proceed right to the end.
Just as a final note, also make sure you understand the terms, especially where payment is concerned. Most quality estate agents won’t ask you to invest in their services until you complete on your sale (at the very end). However, some agents charge a fee up front and in worst cases, some agents may write into their contact that you must pay them regardless of the result, this is normally with budget agents – so be careful!
So, in summary, with Estate Agent contracts;
Don’t get caught up in fixed terms – this is not a requirement; it’s just a way for an estate agent to tie you down.
Using a multi-agent contract is not the best idea (most of the time).
An Estate Agent contract is a legal requirement and is put in place to say you are happy for them to market your property and that you will pay for the service on completion.
If you have any concerns over your contract with your Estate Agent, please do not hesitate to get in touch; we are more than happy to give free, impartial advice with confidentiality.