CEO's Message Dec17
Category CEO's Message
In a tough property market such as the one we are currently experiencing, you may find that you are approached by a number of agents from different real estate companies to sell your property. Whilst this might seem beneficial and you might think that having more than one agent going all out to sell your property is to your advantage, please make sure that you do not end up having to pay commission to more than one agent.
Known to the real estate and legal fraternity as “double commission”, this is a very real risk and one that could cost you, the seller, dearly.
There have recently been a number of cases where an agency had introduced a property to a potential purchaser. Nothing has come of it until, sometimes months later, this same potential purchaser pops up with an offer through a different agency who duly claims the sale and the commission.
The onus is on the seller to keep a record of who views their property and to ensure that there is no double dealing. If you are dealing with multiple agencies and agents, you will need to keep your own list of who has viewed your property and with which particular agent/agency.
In a busy world, I know that that sounds near impossible. That’s why you use an estate agent in the first place, right?
As I see it, if you cannot police who views your property yourself, the only real protection against the risk of double commission is to sign a sole mandate with a reputable agency. From the outset, you can ask your real estate agent to both keep and supply you with a list of people who have viewed your property.
I also would like to caution you to be aware of another so-called grey area where you would be at risk of paying a double commission – when terminating a sole mandate with one real estate agent and signing up another.
Please ensure that the initial holder of a sole mandate to sell your property leaves you with a list of people who viewed your property during that period. You can either keep this yourself to ensure that a person who makes an offer on your property has not been introduced by the previous agency or even make it available to the agency with whom you have concluded a new sole mandate.
All in all, I would advise that, as the seller, it is always a case of being safe rather than being sorry and risking having to pay over more than is necessary on the sale of your property.
If you would like any advice, let’s talk! Feel free to contact the branch principal in your area or email me directly.
Regards Chris
Author: Tyson Properties
