Choosing the right agency agreement can make a significant difference in the sale of your property. Here’s a quick overview of the main types of agency agreements to help you decide.
1. Exclusive Agency Agreement
In an exclusive agency agreement, one agent has the sole right to represent and sell your property. They earn the agreed commission when your property sells, even if another agent or you yourself find the buyer. This is the most common and effective agreement, providing focus and dedication from your chosen agent.
2. Sole Agency Agreement
A sole agency agreement also gives one agent the right to represent your property, but with a key difference: if you find your own buyer and initiate the sale independently, you won’t owe the agent a commission. This option offers a bit more flexibility if you’re open to actively seeking buyers on your own.
3. General Listing or Open Agency Agreement
With a general listing or open agency agreement, you can list your property with multiple agencies and only pay commission to the agency that successfully sells it. While this may increase your property’s exposure, it can sometimes lead to reduced motivation among agents to prioritise your sale, as many agents prefer exclusive agreements.
Important Considerations Before Signing
Before committing to any agreement, read the fine print and clarify any terms you’re unsure about with your agent. It’s essential to feel comfortable and fully understand the terms of the agreement. Avoid pressure to sign after your first meeting; taking time to consider your options is key. We recommend starting with a 90-day listing agreement for flexibility, though your agent can provide other options tailored to your needs.
