Estate Agent Contracts

ESTATE AGENT CONTRACTS… ARE THEY FAIR?

When it comes to how to choose an estate agent, the estate agent contracts are a VERY important factor.

The reality is that 50% of home sellers end up having to change estate agents because they make the wrong choice in the first place…

My aim is to help people sell quicker and for more, so I have put together my ’16 CRUCIAL QUESTIONS to ask estate agents BEFORE signing a contract’

Do not fall into the common trap of instructing an agent just because they give you the highest price or offer the lowest fee. These figures are often simply a means of bringing you on board and tying you into a sole agency contract, lasting several months.  The value of your house isn’t determined by an estate agent, it is determined by the market and it really is true that you get what you pay for. As long as the agent presents and promotes your property correctly, the value will be maximised.

Unfortunately it’s very common for target-driven estate agents to knowingly overvalue a property to win the business. You will probably find that the agent who gives you the highest estimated value will also have the longest sole agency contract.  This can often run up to 20 weeks, committing you to that agency, even if it doesn’t deliver on its promises. I regularly speak to frustrated sellers whose properties have been on the market for anywhere between six and 12 weeks, receiving little interest.  All they can do is reduce the price because they are committed to that estate agency for the duration of the sole agency contract.

Personally, I don’t believe in long restrictive contracts. If the agent’s marketing is good enough to deliver results and the service is excellent and keeps you happy, there should be no reason to tie you into a sole agency contract.

All the best,

p.s. Would you like more impartial advice? Head on over to my FREE eGuides page by clicking here.