Exclusive or non-exclusive seller representation agreement? That is the question or rather one of them that arise when you set for sale a real estate property. Despite the success of websites proposing ads for sales made by the owners themselves, the real estate agencies are still entrusted the majority of the sales.
Most of the real estate agencies encourage their clients to opt for exclusivity to sell their property. What are the advantages of an exclusive seller representation agreement and what is the difference with a non-exclusive one?
What is a sell representation agreement?
All those who want to use a real estate agency to sale their property have to sign a seller representative agreement which will indicate its duration, the conditions to cancel it, the selling price or the commission fees that will be given to the agency.
A non-exclusive seller representation agreement
The non-exclusive seller representation agreement let the seller free to trust the sale of his/her property to many agencies or to sell it on his/her own. The real estate agent will only be commissioned if the buyer is someone he/she has introduced to the seller.
Exclusive seller representation agreement
This type of seller representation agreement constrains you to only rely on a single agency to sell your property. You are forbidden to sell by yourself, unless you have a specified signed clause that allows you to, or by using another intermediate. However, if it is proposed, and very often accepted by the sellers, it is because this agreement has undeniable advantages.
The advantages of the exclusive seller representation agreement
A real estate agent who is in charge of an exclusive seller representation agreement is generally more involved. He will invest more time and efforts to sell your property than if you have many other intermediates. He will also spend more money and advertise more your property so as to sell it fast and at the right price. Three months after its signature, an exclusive seller representation agreement can be cancelled by the sending of a registered letter with acknowledgement of receipt.
What is the amount of the agency’s fees?
The amount of the agency’s fees is set freely by the real estate agency itself. It generally corresponds to a percentage of the selling price. This percentage often is often degressive. The higher the price of your property is, the lesser the percentage will be.