I read an article by Debbie Justus-Ferns, divisional manager of Renprop Sales, which was interesting titled: “Selling property: 4 pitfalls of using multiple agents”. In which she mentioned creating the wrong impression, double commission claims, legal action around false expectations, and the danger of a breach in security. It was indeed a very – to the point article.
In so many areas of our lives, we treasure exclusivity because in our life experience it goes hand in hand with trust, commitment, safety, and peace of mind. I am not saying that that trust is always deserved with all partners, but that is one of the great questions – “Is this person the right person?”.
Let’s assume that you have done your homework, interviewed multiple agents, checked credentials, checked their references, checked their sales records of actual sales (after all anyone can publish reams of sold properties (no one checks these). Then you took a reality check and excluded the purveyors of false hope and pie crust promises. If an agency estimates the possible selling price far higher than other agents or makes claims of having hoards of buyers exclusive to them – these also need to be excluded.
So you found the one, but do you commit to them?
This is why it makes perfect sense.
EXCLUSIVITY SELLS – This could be the topic of a post on its own because it is sage wisdom.
COMMITMENT – Try doing anything with someone else, where one party is not committed – it seldom, if ever ends well. Why should property be any different?
ACCOUNTABILITY – The amount of accountability is inversely proportional to the number of agents.
COMMUNICATION CHALLENGES – Let’s accept that selling property is a fluid process where effective communication is key. Not only do things dynamically develop as the process progresses but information passed on at the beginning may be relevant at the conclusion of the sale. If there is one agent, no problem – but more than one agent can lead to gaps as to what was communicated and to whom – which can get confusing.
RESOURCE ALLOCATION – Real Estate, like any business, allocates resources based on the probability of success. If a brokerage has one prime listing slot and four listings, the first criteria will be which are sole and exclusive listings? After all, why should we boost a property where we might attract the buyer but they may sign with an agency whose efforts have been lackluster?
THE SAME BUYER POOL – We all operate in the same buyer pool. The idea that one agency has any real exclusivity, is a dream of many agents, but in the internet age – it remains a dream.
INCONVENIENCE – More than one agent means you are going to be inconvenienced. A golden example of this is when the same buyer will make appointments with more than one agent, only to realise their mistake when they pull up outside a home that they have already viewed, which happens so often.
YOU CATCH MORE AGENTS THAN BUYERS – So often a seller has the idea that more agents mean more buyers, only to find out that the seller attracts more agents than buyers. Why is that? There are agents who are always just looking for listings as click bait. Their rationale is that is they sell it, that would be awesome but if not they will get buyers which they could place elsewhere or they may find other sellers (who will commit).
LACK OF FOCUS – This happens more often, as the number of agents increases.
There are many more reasons why electing to go with multiple agents does not translate into better outcomes for the seller but those mentioned above are the most common.
If you want to succeed in selling your property for the best possible price in the shortest time possible – interview to find the best agent for you and then give yourself the security of a mandate, which clearly sets out the rules of the relationship.