Selling with the best of both worlds

For those of you who are considering selling but would like the option of doing it yourselves......

In NSW the agency agreement that you sign with the REA is usually an Exclusive agency agreement. This is the agent's preferred type, as the REA then has exclusive rights to sell your home within an agreed period of time. Even if you, as seller, locate a buyer during this period, you are still liable to pay the agent's fees, as dictated by the conditions of the agreement. At the end of this period, it is then up to the vendor to decide whether or not they continue with the agreement or get a new agreement drawn up.

The other agreement, lesser known and used, but a viable option for those of us wanting to have a go at selling ourselves, is the Sole agency agreement. This is where you give rights to one REA to sell your property but you may also find a buyer yourself. If you find a buyer who has not been introduced by the agent, then no commission is payable to the agent.

Though agents generally avoid promoting these agreements, I believe that, if you're willing to have a go yourself and save some dollars, then it may be an alternative to seriously consider. If the REA is confident in getting the price he's quoted before you do, then it shouldn't really be seen as a too big a problem for them.

I had a friend (commercial REA) who used this type of agreement a few yrs ago and ended up selling his PPOR property himself for the price he wanted. His agreement with the REA was that if he could sell it for $x + his commission then they had a deal. On the other hand, if my friend was able to sell by himself for $x + his costs (advertising only) then all was sweet. And, in the end, it was.

Also consider the experience you'd gain from sharpening your own sales skills and seeing what it's actually like to show potential buyers your castle

 

Good info Jacque.
I'm sure if more people knew how the Sole Agency Agreement worked there would be more people willing to give it a go and save a few dollars. But you're right, most REAS do not promote the idea for obvious reasons.

cheers
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