Lets start first by explaining what a sole agency contract is:
Sole Agency Explained
This is the same as sole selling (explained below) but if you find your own buyer, you won’t have to pay anything to the estate agent.
Although if the contract is open-ended, the agent might be able to claim commission, even years after the contract is over.
Sole Selling Rights Explained
If your contract gives the agent “sole selling rights” then think carefully before signing.
The estate agent in the contract is the only one allowed to sell your home during the period stipulated and you will have to pay that estate agent, even if you find your own buyer.
The Pros & Cons Of Sole Agency Agreements
|Negotiating a lower comission due to exclusivity.||Choosing an agent that isn’t very good.|
|You won’t look desperate to sell with the property appearing numerous times in the same paper or property portal.||If you have multiple agents, then even if one under performs it shouldn’t matter.|
|You should build a better rapport with the agent who will be more motivated to help||You may reach a more limited number of buyers with a sole agent.|
There are other types of estate agency contracts to be aware of, such as multi-agency agreements.
Apart from choosing the right agency contract, you need to make sure you choose the right estate agent, whether that’s a local or online estate agent.