There is a misconception that having more agencies list a property will result in a quicker sale for a high price. Deciding whether to sign a sole agency or a general agency agreement, is a decision that shouldn’t be taken lightly.
A sole agency agreement means you list your property with only one real estate agent until the term of your agreement has expired (but you can change your mind within one working day of receipt of a signed copy). A salesperson or agency undertakes to give the vendor the best service and accepts the responsibility to sell the property for the best price.
Ultimately, salespeople work hard to get to know the property intimately and report feedback to the vendor, often daily. They’ll bring team members through the property, explain the key selling points and ultimately find interested buyers.
When a general agency agreement is in place, the property goes into a pool with other agencies, with no agent specifically responsible to market the property and could result in the property lingering in the market for an extended time. The vendor is likely to limit marketing funds to each agency therefore spreading the market exposure too thin, and may be liable for paying double commission to two agencies if they fail to sign the clause that protects them otherwise. For a buyer, it can become confusing, sighting the same property advertised by different agencies as well as time consuming for the vendor dealing with multiple agencies, documents and reports.
An important aspect when listing with a committed real estate agent is the coordinated approach for the selling process, from marketing, photos and advertising, to open homes and viewings, and negotiating with interested buyers, providing informed feedback to the vendor.
Most agencies prefer the close relationship that comes with a sole agency, while delivering excellent service. Perhaps with the fast-paced access to property sales in the digital world today, general agencies are less affective and it may be worth putting all your eggs in one basket, just this once.