Estate Agent terms - Questions

HugoSP

Had 3 agents round to value a flat.

I am thinking of instructing one of them who appears to be realistic about the price (not the highest valuation), and keen to sell it. And he is talking about a joint agency fee of 2%.

This is the same commision figure as some sole agency agreements I have been offered, so I suspect it may be a good deal. The area is Plymouth, Devon.

However, am I right in thinking that this would also give me the option of selling it privately during the contract term? I have not considered putting it with another agency but I have some contacts on the lettings side who may be able to find a buyer.

If so then great, as I feel that under the current market conditions I would like to have several options.

Can any EAs give impartial advice here please?

Thanks

courtjester

Joint agency means that you can freely instruct more than one agent without the commission under your first agreement being affected. Normally who gets paid is on a first past the post basis, but can sometimes be a simple sharing arrangement between the agents.

Sole agency means that you can only have one estate agent (normally giving you a cheaper fee).

With either basis of contract, you are free to sell privately anyway - you are not 'joint agents' with your estate agent, there is no agent in a private sale.

It is a common misconception that only estate agents are allowed to sell property and that if you sell privately, you still have to pay your agent - that is only the case if you are stupid enough to sign a "sole selling rights" agreement giving up all your rights to the estate agent...

Best option is to sign a sole agency agreement and get a discount - expect to pay no more than 1.5% or less - leaving you free to sell or advertise privately at the same time - if you find your own buyer, then you owe your sole agent nothing.

Benny24

Have you considered selling privately? I know this area well, and a few people I know have sold privately here with success.

If you don't want to go privately, then I agree with court jester and go sole agency at 1% or 1.5% (plus vat) and make sure there are NO TIE IN'S!