Should I Sign A Real Estate Exclusivity Contract?

November 04, 2020 RAWAT 0 Comments

You have decided to sell your apartment and now a long list of doubts assails you, the first one, if you dare to undertake the process yourself or hire an agency.

 If you lean towards hiring, the next question will be if you commit yourself exclusively to a single agency or if you give your apartment to several real estate agencies. 

However, you must bear in mind that an agency will always provide you with keys to sell an apartment in the best possible conditions.

 Another aspect that you cannot stop thinking about is that as a seller you think that by working with several agencies they can establish competition and that as a consequence, the sale is expedited.

 On the other hand, signing an exclusivity contract arouses mistrust in many sellers. In this article we will talk about what it is, what advantages and disadvantages a real estate exclusivity contract can entail.

 What Is A Real Estate Exclusivity Contract?

 The signing of an exclusivity contract with a real estate agency establishes that  the owner exclusively assigns the rights to sell your property for a specified time.

 The contract also establishes the condition of exclusivity, the price of the property, the agency's fees, the duration of that exclusivity because indefinite-term agreements are not admissible.

 This contract is signed by all the parties involved: the notary, the seller and the buyer.

 What Are The Advantages For The Seller Of Signing A Real Estate Exclusivity Contract?

 If a relationship of trust is established, the real estate agency by providing all portfolio of resources will achieve the sale of the home in a shorter time and will defend the price agreed with the seller.

 In this situation, hiring an exclusive agency to sell your apartment may be a good option.

 The agency will help you with the price proposal based on a market study and a promotion strategy, it will be in charge of contracts prior to the sale, to attend to negotiations with the notary, to obtain a certificate of occupancy and other procedures.

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 An important aspect is that, being your only source of information, it facilitates your management. You can safely know the status of the sales process, the influx of potential buyers and the number of offers they have obtained.

 Having a real estate exclusivity contract can improve your position when negotiating the sale price.

 It is normal to find that, when the same property is offered in different real estate agencies, the interested buyer makes different offers to each one, which allows him to close the deal for the lowest price he can get from all of them.

 Also in terms of promotion it can have some advantages. Forget about how to advertise a house to sell. Without any doubt, it is easier to see when real estate agencies make an effort in the process of displaying the property.

 You can see this in the positioning of your ad on the portals, in the hiring of professionals for the photographs and the plan, in the quality of the advertising posters, in the use of social networks.

 An  exclusivity contract is signed for a period between 3 and 6 months, but there are contracts of up to 5 years. If the owner is not satisfied after the deadline, he can cancel the service.

 What Are The Disadvantages Of Signing A Real Estate Exclusivity Contract?

 

       The exclusivity time is one of the biggest drawbacks. Although the contract period varies by mutual agreement, it is advisable for the seller to contract for short periods.

       Costs. The fees charged by traditional agencies can range between 3% and 5% of the final price of the home. Some get to charge up to 8%.

       The trust. Before entering into an exclusivity contract, the seller must find out who your agent is, in terms of  experience, seniority and prestige.

 What Are The Disadvantages For The Seller Of Working With Several Agencies?

 It is a common mistake to think that having more than one agency in charge of the sale of your home will improve the chances of closing the deal more quickly.

 This thinking that there will be competition between the agencies. The truth is that it doesn't work like that. In the real estate market, the number of properties for sale far exceeds the number of buyers.

 For this reason, you should opt for quality and not for the quantity of real estate agencies.

 When the buyer decides to leave the sale of his property in the hands of several agencies, he must be alert in several aspects.

 The first is to review the conditions of sale that are agreed with each one. It is common to find that the same apartment is advertised in different agencies and therefore has a different price in each one.

 It is also possible to find that the advertisement of the house has different and erroneous specifications such as: different number of rooms and bathrooms.

 These errors arouse a certain distrust on the part of potential buyers and as a consequence, the sale process is hindered. Without a doubt, the errors that can be generated in your ad deteriorate the image of your property.

 You must be very clear that there is a great risk when offering the same property through several agencies.

 Since it hinders the image of the property not only in terms of the quality of the photos and the advertisement of the publication, but also in the range of prices at which different agencies publish.

 How To Choose A Good Real Estate Agency?

 Researching their reputation is essential. Visit their social networks, their web platform or any aspect related to it. It is also useful to navigate in real estate forums, in Facebook groups. Of course, you should visit the agency or agencies that you like in person  to see them first-hand.

 Once you have investigated it, you will be more aware of the quality of its customer service and everything that the agency is willing to provide you.

 In the end, you must choose the one that offers you the best real estate exclusivity contract conditions.

 At Deplace we charge a fixed price, without commissions for the client. In this way you will know at all times how much your real estate expense is going to imply. This payment will be made in the deposit and not at the signing of the sale.

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