Ah, I’ll have critics soon for blunting the reasons of getting simply one property agent to do your marketing. Let’s see the disadvantage of awarding an exclusive and advantage of doing so.
Disadvantages of Engaging an Exclusive Property Agent
You have gotten yourself an unethical agent
He appears eloquent, looks capable and has good product knowledge to win your trust for an exclusive contract for 3 months. Trusting he’ll do his job, you left him alone for 1 month.
When you realise time has passed but there are no updates, your mind began to wonder what has the agent done. You called him for updates but he says he has been marketing but there wasn’t any response.
You flip your Classifieds or fire up your browser, to realise that he hasn’t been even trying to market your unit at all. Frustrated, you wanted to end his exclusive, but you realise you’re bounded for 3 months.
This happens.
You decide not to sell for various reasons
The market is in your favour, you’ve decided to put your home in the market to catch the trend. Unfortunately, the cycle ended, a crisis has happened in the financial sector.
Or for some reasons your family goes against your will to sell, you’re in a pickle but you have your exclusive signed.
These are definitely the possible factors that you would regret having an exclusive contract signed with a Realtor if you haven’t think things through or haven’t done your research properly on the Realtor whom you have appointed.
On the contrary, if you found the correct person to deal with,
Advantages of Engaging an Exclusive Property Agent
Clear Relationship Established
With the exclusive contract, you won’t have to haggle with the Realtor when a deal is closed on his commission. He would also know his roles and duties as your agent to be responsible to his principle, which is you.
Efficient and Dedication to Marketing
With an exclusive contract signed with the right Realtor, he would be literally working towards a clear goal; to reach your target price stipulated in the exclusive contract. He feels more motivated as there couldn’t be another Realtor which could undercut him. He will work hand in hand with other Realtors to reach your price goal as his interest is protected.
Unchallenged Price Control
With too many Realtors handling an open listing, it tends to bring the price down as Realtors will try to attract any buyers with the lowest price. With a smart Realtor, he would be controlling the price and work hand in hand with other Realtor agents to bring the BEST offer to you.
One Point of Contact
Without notion, having your home marketed by a couple of agents, you’ll have to macro manage them and remember what you have told them.
You will also have dilemma on who to award to if both agents brings you the same offer.
One point of contact, one person to liaise. Best results with one person. One clearly has to find the right Realtor to achieve the best results in terms of pricing and satisfaction.
In a Nutshell
If you have gotten yourself someone who’s inefficient in marketing and is irresponsible to their listings, you would have wasted your opportunity for the duration of your exclusive is covered.
Should you have gotten a prized Realtor who knows how to take care of your interest, goals would be achieved in a stipulated time. Win-win situation.
i think the owner signing the exclusive is then stupid , he can always include term such as how many respond his must have and how many people he need to to bring to view the property in one week or otherwise the owner had the right to terminate the exclusive agreement any time.
Too bad ,most of the exclusive are draft out by the agency and does not include those terms and because they know if it is included the agent my not be getting any exclusive for the agency unless they are able and capable to perform.
why not have an standard exclusive agreement with all those terms included for all agency and that will solved the problems
Hi Nick,
Unfortunately most exclusive agreements are tied to the agencies rather than the agent that is working for you, so customizing the exclusive agreement MIGHT not be possible (unless being explicitly stated).
not to mention most agents are crooks, and are highly overpaid for the amount of work (bull) which they do.
Hi marius, there’re ethical agents around who do care for their principle (:
Hi Marius
Just to add on to what Benson mentioned earlier, whilse there are a handful of unethical agents around, there are also those that truely care about their integrity as a Professional Realtor and work very diligently at their client’s listings. A agent’s good work and efforts are usually highly regarded by their clients, with whom I’m sure will agree that these agents’ pay is not only a hard day’s work but an honest living and well deserving too :-)
Well said Jennifer! (:
Hi, if there’s no exclusive agent, do the agents get offended if u decided to give the business to other agent?
Hi Claudia, it really depends on the situation and case to case scenario. Most of the time yes :)