If you’re preparing to sell your home, you might’ve asked yourself: Is one agent enough? In this guide, we’ll take a look at the difference between sole agents and multiple agency agreements, and the pros and cons of both.
Can I instruct more than one estate agent?
Yes, you can. If you’re ready to place your home on the market, there are a few options available to you:
- Sole agents
- Joint sole agents
- Multiple agents
Your decision will likely depend on how fast you wish to sell your home and the size of your budget, but there are a few things you’ll need to consider before signing any contracts.
Sole agents
As the name suggests, selling with a sole agent means you will only have one estate agent handling your property sale.
Once you’ve instructed a sole agent, you will likely have an agreed contract duration which you will have the option to extend if your home remains unsold. If your home is sold within the agreed period, your sole agent will earn commission on the sale. But if not, you are free to change agents.
At Ellis & Co, we’ll help you to achieve the asking price you want within the timeframe that suits your move. Ask us how.
Advantages of using a sole agent
As you’re only paying for one agent, a sole agent is likely a more cost-effective choice than a multiple agency agreement.
Sole agents are guaranteed commission if your home is sold, and therefore, they have all the incentive needed to put their time and effort into your house sale. Additionally, the contract duration adds an element of pressure, and your sole agent should do everything in their power to get your home sold before this deadline.
Another benefit is great exposure for your property. While it’s true that those who used multiple agency agreements in the past had the advantage of greater exposure, this might not be the case today.
The digital world has changed the way today’s agent’s market properties. With access to multiple online social media platforms, property search portals, and databases full of potential clients, it may no longer be necessary to use a multi agency agreement for better exposure.
Disadvantages of using a sole agent
You will have less flexibility when it comes to switching agents, especially if you sign up to a ‘lock-in’ period, which typically ranges anywhere from four to twelve weeks.
You can still work with another agent if you’re already tied into a sole agent agreement, but this means that you will have to pay commission to your original sole agent as well as the agent who sells your home, which means you will end up paying twice.
Joint sole agents
Enlisting joint sole agents means that you’ll have two agents working on your home sale instead of just one. Both agents must agree to this before either can proceed, and the decision over who gets what share of the commission must be made before the agreement is drawn up.
Advantages of using joint sole agents
Having two agents means having access to additional contacts, some of which may be potential buyers.
Joint sole agents may also use a more extensive marketing strategy, allowing for a good amount of exposure. Additionally, you will only have to pay one commission for two agents.
Disadvantages of using joint sole agents
Two different advertisements for the same home could put some buyers off. You will also have two ‘For Sale’ signs outside your house, and this may give the impression that you’re eager to move out of the home as quickly as possible, or that your home is struggling to sell.
Another drawback may be having to increase the fees to account for both agents receiving a commission split. There is also the potential that less trustworthy agents may take on the attitude that they will achieve their share in the commission whether they find a buyer or not. This could mean that they don’t put in enough leg-work to achieve the best outcome for your sale.
Related: The importance of a precise valuation
Multiple agents
Instructing multiple agencies for your house sale is relatively self-explanatory. You can have as many agents as you want marketing your home for you, which means you will need to be willing to pay multiple fees at potentially higher rates.
Advantages of using multiple agents
The clear advantage in this case is broad market coverage and an incentive for two or more agents to exert maximum effort.
Instructing multiple agencies will likely get your home the most exposure possible, which could result in a quick sale. Multiple agents competing against each other might also speed up your property sale.
Related: Is my house ready to sell?
Disadvantages of using multiple agents
By having your home listed multiple times, you run the risk of waving a red flag at potential buyers. They might question why your home is unable to sell under just one agent, or why you appear to be in a rush to move.
Every agent involved in the sale will be competing with the others, which could make the process quite disorderly for everyone involved. Also, several agents will have the keys to your home, and this could make the viewing process more disruptive.
Lastly, using multiple agents can be expensive, and you may struggle to find a reputable agent who is willing to get involved. These agreements can be less than ideal for both parties, as agents can find it chaotic and sellers may not receive the level of service they deserve.
