Adam Purnell
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Contract Length in Estate Agency

I'm getting more and more customers come to me who are unhappy with their chosen estate agents, but are stuck with them due to signing a long term sole agency agreement. In many cases the relationship has broken down and communication is little to non existent. In this blog we will look at the different types of contracts, contract length, and how you can protect yourself and your property. 

The most common types of agreements and payment methods we see in estate agency are:

SOLE AGENCY - This means your chosen agent is the sole agent responsible for marketing your home. This will be for a set period agreed between you and your agent. Typically this ranges anywhere from 0 weeks up to 6 months with the average being a 12 week agreement. This means that your chosen agent is the only agent who can sell your property during this period. 

MULTI AGENCY - A multi agency contract allows you instruct more than one agent to sell your home, with the agents competing to win the fee. The agent who sells the property will receive the commission or fee agreed. 

NO SALE NO FEE - This means if the agent doesn't sell and complete on your property you won't pay them the agreed commission. Meaning they are highly incentivised to sell your property. 

PAY UPFRONT - The pay upfront model has become more popular over the years with many online agents popping up. You will usually pay regardless of selling in exchange for paying a smaller fee. This can be a false economy as your house can be left to sell itself with little input into negotiations from a trained professional. Meaning at the end of the process you are worse off financially. 

Now you may ask, what should I be looking out for when choosing an agent? 

In my opinion anything above a 4 week sole agency agreement is unreasonable. If your agent is confident of providing you with the best possible service, a correct valuation and excellent marketing material, then there is no need to tie you in. If you are happy with everything your agent is doing you will stay anyway.  

That's why Adam Purnell, Keller Williams Hinckley provide all of their customers with a no sale no fee, zero week contract. This means if our relationship breaks down, or you don't think we are working hard enough you are free to leave at anytime. 

Should I choose more than one agent to sell my home? (Multi Agency)

This is down to personal choice but lets look at it from a buyers perspective. If you were to see a home with 2,3 or even 4 for sale signs outside what would you think? The general consensus is it makes a seller look desperate, or like they are struggling to sell. This can then impact on the price you achieve for your property.  

If you pick the right agent to sell your property you should only need one. 
Lets be honest, no company is perfect all of the time, but if you have protected your decision by reading through the contract you give yourself the best opportunity of being able to switch agents if things don't work out with the first one. 

If you are unhappy with your current agent or need any advice then I am here to help. Not all agents are the same. Please feel free to reach out on social media or call me on 01455 332024. 

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Adam Purnell

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