The real estate industry does have its shortcomings and core problems. Many believe these begin with a real estate agent’s Exclusive Agency Agreement. This is the document that agents require you to sign when putting your home for sale. It is a contract (and can be very dangerous) and is designed to achieve two main objectives for the agent:
1. It ‘locks you in’ (usually for 3mths) meaning you are stuck with the agent regardless of whether you are happy with the agents efforts. Sure, you can dismiss the agent but if you sell with another agent within the 3mths you will probably have to pay 2 commissions. So, if you’re unhappy with the agent after one month you’re stuck with them for another two!
2. It commits you to paying any specified upfront costs for advertising your home. If these ads don’t work, the agent has gambled away your money, not theirs.
To give you an idea of just how dangerous this document is, consider the following statement made by a ‘successful’ real estate agent:
“As an agent our primary focus is to use whatever means necessary to convince an owner to sign our Exclusive Agency Agreement instead of signing with our competitors. Once they’re locked in with us then we’ll worry about the sale”.
If you are going to become dissatisfied with an agent, it won’t be until after you’ve signed with the agent. Result = many sellers become stuck with agents they no longer want, wasting their valuable time & money.
Don’t be fooled when agents say “The law says we can’t put your home for sale unless you sign this”.
The law does state that you have to sign an Agency Agreement for the agent to sell your home, but there is no law that says you
have to be ‘locked in’ for any period of time. Nor do you have to pay for advertising.
The best agents know you’ll be delighted with their service, professionalism, skill & results. These agents don’t use ‘lock in’ Agency Agreements and professional marketing is complimentary with them. Before starting these agents will give you a written guarantee that says you can dismiss them as your agent at anytime you choose & at no cost. Hiring one of these agents is like going to a cinema, watching the film, and paying for your ticket on the way out provided you liked what you saw. If your not liking the film you can leave at anytime and pay nothing.
There may be an agent like this in your area. Hire them, let them showcase their skills for you on the ‘silver screen’, and pay
for your ticket on the way out provided you liked what you saw & got what you want. Please, no hooks and no gambling.