What to look out For in Estate Agent Contracts

It is important to select the right agent for you and the type of property you are selling when using a real estate agent to sell your property. Here we explain some easy top tips on what to look for when selecting an Estate Agent. next

Local Agents

Agents close to the property that you sell will have more knowledge of your surrounding area and the type of property that you sell. Check how many properties in your area they are selling.

The number of their ‘For Sale’ boards showing in the area that has sold’ written on them can be an indicator of the agents’ success rate, whilst an indication of their suitability to the type of property you are selling can be found by reading the Local Papers and seeing how many similar properties are sold by that particular agent.

What estate agents are used by people you know?

As in a lot of programmes, personal advice goes along with it.Ask anyone who recently sold a property who sold it through agents to get an understanding of the degree and standard of service they were offered. Ask how long it has taken to sell their house.

Anyone can give you a high figure for selling your house. This is a common ruse that is used by agents to protect the business of a seller. After a short while, they announce to you that you will have to drop the sale price due to the decline in the market (or any other excuse) – but you are already bound to a deal with them by that point. To value your land, get many different agents; and while they are all likely to vary slightly – beware of the exceptionally high valuation.When given a valuation ask for examples of properties of your property’s type and location that have sold recently at that price. You can also verify this from numerous internet-based house price websites that provide details of property prices in a specific region.

The Correct Fee Negotiation

It does not always pay to negotiate a reduced rate. A lower commission decreases the incentive for the seller to sell your property and can take priority over properties that receive higher commissions. Try and provide an incentive by negotiating a sliding scale of fees with them. If the property sells for the full asking price, the commission will be paid on the basis of the highest percentage of the sale price, and the percentage will then be decreased on the basis of the selling price achieved.

Having the right terms in the contract between estate agents

Carefully read the terms of the contract to make sure you know what sort of estate agency contract you are signing. On this website, see our article on the various forms of estate agency contracts.Choosing the wrong type of estate agency contract may imply that you are restricted as to how you can sell the property and may imply that you are stuck with an underperforming agent or may have to pay more than one agent; in certain cases, the wrong estate agency contract may imply that without selling the property, you have to pay fees and costs!