Exclusive Agency Agreement
You will deal with everything yourself or you will make use of services of real estate agency. If you prefer the second option you are likely to face the possibility of concluding Exclusive Agency Agreement but before that you should be aware of the following things:
Your guarantees after conclusion of Exclusive Agency Agreement
Conclusion of this type of agreement means that your interests will be represented by one real estate agency which will provide an all-inclusive service for you and will strive to achieve the highest possible selling price for your property.
Benefits of Exclusive Agency Agreement
• Exclusivity implies that a real estate agent will always act in your favour rather than putting counterparty's interests before yours.
• It's generally thought that handling the selling process on your own or cooperating with several real estate agencies (which will compete with one another to win over a buyer) will cost you 10% of a selling
• A real estate agent will devote maximum effort, time and financial resources to advertise your property through different media what is likely to result in shorter selling process.
• You will be continuously informed about number of potential buyers, media channels which are currently used and general state of the selling process. On the basis of this information you will be able to analyze the situation and in case of a problem discuss with your agent why it has arisen and which steps should be taken in order to eliminate it.
• A real estate agent will present truthful information about your property and will guarantee both pre-purchase and post-purchase service to a potential buyer as well as support during the selling process what may make him / her more willing to pay the price you agreed upon.
• The pool of potential buyers is reliable, in other words, a person who has decided to have a pre-purchase inspection of your property is likely to have real interest in your offer.
• A real estate agent is likely to have partnership agreements with other agents who can “hand” a potential buyer in case of having a suitable one.
Areas of agreement requiring your special attention
• Obligations of real estate agent to you, minimum selling price and calculation of provision (which will be paid after a deal has been closed) should not be missing. If you have any requirements like particular selling conditions they should be reflected in the agreement as well.
• Duration of an agreement should be specified. Different views on the length of such partnership exist. Two – three months are considered optimal, sometimes a seller does not mind waiting a bit more, however in this case it's not recommended to conclude an agreement for a period exceeding half a year.
• Get thoroughly acquainted with termination provisions and sanctions which will be imposed on the party guilty of the breach of an agreement.