Agency Agreements for the Sale of Residential Property: What You Need to Know

When it comes to selling your property, one of the most important decisions you will make is which real estate agency to choose. While some homeowners may prefer to go it alone and sell their property independently, choosing an agency can offer a range of benefits, including increased exposure, access to a wider pool of potential buyers, and expert knowledge of the local property market.

However, before you sign on the dotted line with your chosen agency, it`s important to understand the terms and conditions of the agency agreement. This document outlines the scope of services provided by the agency, the duration of the agreement, and the commission that will be payable on the sale of your property.

Here are some key factors to consider when reviewing an agency agreement:

1. Services provided: Make sure you understand exactly what services the agency will provide, including property marketing, open homes, buyer inspections, negotiation on your behalf, and contract preparation. If you have any specific requirements or expectations, ensure these are clearly outlined in the agreement.

2. Duration of the agreement: Agency agreements are typically for a fixed term, ranging from 30 days to 90 days or longer. Consider the length of the agreement carefully, as this will determine how long the agency has exclusive rights to market your property. If you decide to terminate the agreement early, you may be liable for a termination fee.

3. Commission: Real estate agencies typically charge a commission based on the sale price of the property, which can range from 1% to 4% or more. Make sure you understand the commission structure and any additional fees that may be payable, such as marketing costs or administration fees.

4. Marketing plan: A comprehensive marketing plan is essential to achieving a successful sale. Review the agency`s proposed marketing strategy to ensure it aligns with your expectations and targets the right audience. This may include advertising in local newspapers, online listings, social media, and property portals.

5. Exclusivity: Most agency agreements include a clause prohibiting the homeowner from using multiple agencies to market the property simultaneously. This is known as exclusivity and is designed to prevent competing agencies from diluting the marketing effort. However, if you have concerns about exclusivity, discuss this with the agency before signing the agreement.

In conclusion, choosing the right real estate agency can make all the difference when it comes to selling your property. However, it`s important to review the agency agreement carefully and ask any questions before committing to the sale. With the right agency on your side, you can achieve a successful sale and move on to your next property adventure.