After careful contemplation, you have selected your real estate agent. Congratulations! Now there is an important issue whether to trust the sale to the agent under the exclusivity or not.
At this time, think over that an exclusive agreement will handicap you, so why shouldn't you offer your house or flat to more estate agencies; anyway, the more agencies have the offer, the more clients you will get; besides of that, agents will compete with each other and, thus, you have a chance to sell your real property quicker. Unfortunately, it is a big mistake that only can harm you. Let me then describe below the differences between these two agreements so that you, after reading this article, can make the right decision.
1/ marketing activities
Exclusive agreement - an agent develops marketing activities, advertises in real-estate servers, tops and actualizes the job order in Sreality.cz (your ad is constantly being placed on the first pages and is well-visible), gives advertises into printed periodicals, has a broadsheet, creates special offering sheets, designs leaflets. All these activities are financially demanding and all is being covered by the agency.
Non-exclusive agreement - at the most, an agent will just advertise the real estate on a couple of servers, and his/her work is finished by this. In case of a non-exclusive agreement, when the agent does not have a certainty of the sale, he/she rarely develops other activities.
2/ real estate advertising
Exclusive agreement - an agent will take pictures of the real estate (the optimal version is home staging), will choose the optimal number of photos; the ad must contain a valuable description and mustn't miss technical data, a layout in the photo gallery, precise data about the area in square meters and the determined price. The advertisement is only one time presented in public, looks professionally, gives very good impression to clients.
Non-exclusive agreement - sometimes, the agent will make no photos and just tell you to send him/her photos; he/she will not modify these photos and upload all of them into the gallery, including pets and personal stuff; description is short and includes neither valuable information nor the layout. Provided this job is owned by more than one real estate agencies, this real property is being presented in public several times with different prices, with different commissions, different photos. How the future buyer reacts on it? The first thoughts are as follows: And what is the real price then? It probably cannot be done well if, let me say, eight agencies take care about it. So where is a mistake? Whom should I really deal with? As far as I want to buy, can I then have certainty that other seven agencies will respect it? What if I lose money?
3/ real estate viewing
Exclusive agreement - the exclusive agreement serves to save your time, money and nerves. A first-class agent will require real property keys (provided it is possible) and will inform you just about serious interesting persons. While it is not possible and you, for example, still live in your house, then he/she should sort out interesting persons as early as via phone conversation to avoid meetings with realty tourists and not to lose uselessly your time.
Non-exclusive agreement - here the agent is able to bring up practically whomever to prove you that he/she has clientage and to persuade you to change your opinion on the non-exclusive agreement. No sorting is being performed.
4/ real estate price
Exclusive agreement - an agent has a clearly determined price according to the agreement and defends your interests. All buyers try to argue regarding the real estate price and want a discount. Your agent should evaluate situation so that all participants are satisfied.
Non-exclusive agreement - agents of more agencies are being felt over themselves in an effort to prove that they have better square meters and a better price. Sometimes, just to be sure, they specify nothing at all. Have you ever seen a sentence "information in real estate agency" instead of the price? How were you impressed by it? It is quite possible that they will promise the lowest possible price to a client, and afterwards they will come to you and describe you that the buyer offers just so much and will want to persuade you to discount to sell it as the first. Isn't it terrible?
Exclusive agreement - an agent should automatically inform you about each feedback from the client with whom he/she was on your real property's viewing. The main point of the feedback should be what the client liked and what not, and why not. Among others, the feedback should contain a price proposal, eventually a second round of viewing and other information. Just based on these feedbacks, the sale strategy can be evaluated, as well as a procedure or marketing activity can be changed.
Non-exclusive agreement - largely, we are only getting feedback regarding an interest to buy or to decrease the price. Agents without exclusive agreement, unfortunately, are not motivated and don't take concern in advising you to help you with the sale of your real estate by another agency.
At the conclusion:
What should be included in the exclusive agreement?
The exclusive agreement should contain clearly given conditions of the sale, a list of guaranteed services to be provided, legal service, custody, the clearly given purchasing price, conditions for both contractual parties, rights and obligations, validity for a definite period of time. This is the minimum.
As a bonus at the conclusion, it is cooperation with other real estate agencies
Exclusive agreement - the agreement should also contain a fact that the agent will co-operate with other real estate agents; he/she yet defenses your interests. Thus, the main question is replied, namely whether it is better to give your real estate to more agencies. Not only you would communicate with a single person, what is a benefit, but having an exclusive agreement, your real estate agent may speak to other real estate agencies and, thus, address bigger portfolio of clients.