Thinking of hiring several agents to sell your property?
Updated: Mar 20
Case study: a few months ago I received a call from a person. He said that for 8 months he had been unsuccessfully trying to sell his house, despite the fact that 4 real estate agencies were engaged in the sale. When I looked at all the online listings of this house, I saw the following picture: 3 of 4 listings had poor quality photographs, all the listings had different sizes of the house or plot, and in two listings the price was lower because it was indicated without an agency commission. When I asked how many people visited his house so far, the man said that there were 4 visits, of which 2 people made offers, but they were so low that didn’t make any sense.
Unfortunately, this is a common scenario when, in an attempt to sell faster and more expensive, people ask several agencies for help at once. They believe that this way their property will get more advertising and the agents will be more motivated, knowing that there is a competition. In reality the situation is just the opposite. If an agent despite maximum efforts has an uncertain probability of earnings, then he will simply not make those efforts. Such agents work for quantity, collecting as many properties as possible in their portfolio. Without a guarantee of a return on investment, they will not invest in advertising, so the seller’s expectation of more advertising usually turns up in repeated listings on the same websites. In the eyes of potential buyers, this looks as if someone making a lot of efforts to sell a problematic estate.
Usually, when phoning to such listings, a potential buyer will hear the following answer to most of their questions - I will check with the seller and will call you back. It’s simple - the agent with a portfolio of more than 10 properties does not have time to find out details of each of the offered properties. And most importantly at this moment he does not know whether this estate is still available.
Speaking about the competition: because the agent runs the race against other agents on a sale of the property, he will do everything possible to ensure that you sign the reservation agreement with the client he brought. Every minute counts! Do you think he will have time to check the financial reliability of a potential buyer? It is in transactions with more real estate agents involved most often happens that the buyer backs away from the transaction due to financial problems, for example, he has not received a mortgage. He loses his deposit, and the seller - time and nerves.
It happens that a potential buyer calls to all the listings, and when it comes to the deal, agencies can start arguing whose client it is. Naturally, the seller will be drawn into this dispute. It also happens that agencies simultaneously sign a reservation agreement with different customers. The seller will have to choose whom to sell the house to. But the deprived buyer can file a complaint, and again the seller would be the one to resolve it.
The Association of Real Estate Agencies of the Czech Republic is sure that selling a property with several agencies is not the best way. You can read about it on their website: https://www.arkcr.cz/neobavejte-se-exkluzivni-smlouvy/.
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