Exclusive Agency: What You Need to Know
Exclusive agency is an agreement between a listing agent and a home seller that a listing agent would expect you to sign before you put your home on the market.
What Does an Exclusive Agency Agreement Do?
Agency agreements lay out the terms & conditions and additional things that you as a seller can expect from the real estate agent you’re working with. This is a great time to ask the agent what you can expect from their marketing efforts. Is your agent:
Going to have fliers in front of their house?
Keep those flyers stocked?
Host an open house?
Provide weekly updates?
Ask you to do things that make you uncomfortable?
Require/ask things that you can’t do?
Recommend suggestions for home improvement before the buyer shows up?
Give notice are you going to get before a buyer shows up?
Why Does an Agent Need One?
A real estate agent will most likely ask for an exclusive agency agreement be signed up front before time is spent working with a client. This guarantees that their client can’t leave after an agent has spent countless hours working on their behalf. Some agents might not require an agreement initially. Some might be willing to put in a few hours of work to show clients their capabilities before requiring an agreement be signed. Few agents will wait to have one signed up to the point of making or accepting an offer at which an agreement MUST be signed.
As a client why would you ever sign one? You could have multiple agents working on your behalf and when one agent finds you the property you like or a buyer for your home, you then commit to working with them. This sounds great doesn’t it? Think about this from an agent’s perspective, why would I work hard, commit lots of time to clients who won’t commit to me? Where’s the loyalty there? Remember as a client, make sure to set clear expectations around agency agreements. If you don’t want to sign one upfront, be transparent with your intentions. Are you wanting an agent to prove themselves first?
Benefit to Both Parties
Things like this are important, having the right agent will make this process a lot smoother and more comfortable for you. Agency agreements can be discussed while having a buyer’s consultation. Having an open line of communication and trust are paramount in choosing an agent to work with. Both parties should be able to speak freely and candidly, set expectations and have a game plan so you have a good experience selling your home.
Our agents are standing by to answer any of your questions regarding exclusive agency or real estate in general. Give us a call!
