If a seller signs an exclusive listing agreement with an incompetent agent, they are stuck.
Auction, tender and private treaty are all forms of exclusive listing agreements. These agreements engage an agent to sell a property in exchange for a fee. An exclusive agreement can last three months or even longer. Exclusive listing agreements are part of the real estate landscape.
An exclusive listing agreement compels the seller to pay the listing agent when the property sells, regardless of who sells the property.
Good agents invest significant amounts of time, energy and financial resources working to sell a property. They need the security of payment upon sale to commit these resources, a reasonable premise upon which to work. Exclusive agreements provide this security.
However. exclusive agreements often tie up the people they are supposed to be helping. The seller.
If a seller signs an exclusive listing agreement with an incompetent agent, they are stuck.
Many agents fail to fulfil their duty to the seller. They overprice a property to get the listing, and then disappear. The seller hears little feedback from the agent, sometimes nothing. The property is merely launched onto the Internet and the agent sits back and hopes for a sale. The sellers are simply ignored.
There is an easy and effective method to avoid the danger of an exclusive listing agreement.
Insist any agent you hire provide a dismissal guarantee.
If you are unhappy with the agent, allow them seven days to resolve the problem. If it remains unresolved, you can dismiss the agent immediately.
If an agent is not prepared to guarantee their services, you should not employ them.
It is an unfortunate truth that sellers should never accept an agent’s promises at face value.
This article is an excerpt from “Real Estate’s Greatest Dangers – How to avoid them Through Smart Decisions” written by Andrew Trim – Managing Director of the Johnson Real Estate group – To receive a free please email mail@goulburnre.com.au and we can post a copy to you or visit our office at 148 Auburn Street.