Should I sign an Exclusive Agent Agreement for selling my property
An exclusive agent agreement can be useful when selling a property in Singapore. Many homeowners think selling is a numbers game. They believe the more property agents they engage, the higher their chances of securing potential buyers and selling their property at a higher price.
There are indeed pros and cons of using multiple estate agents. While not signing an exclusive agency agreement can ensure more “property for sale listings” of your property pop up, a sale is not guaranteed.
There are pros and cons of using multiple estate agents to market your property, and we’ll cover them in this article. But if you’re ready to begin selling your property, let us help. Get started by receiving a free valuation report and finding the good property agent in singapore.
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What Is an Exclusive Agency Agreement?
An exclusive agency agreement is a legal contract between you (Property Owner) and a real estate agency. The agreement grants the agency as the sole entity to sell the property. You can only engage one property agent to represent you.
An exclusive agency agreement has a finite period of up to 3 months. If a suitable buyer is not found, the seller may renew their agreement or approach another agent to market their property.
Each property agent is tied to a particular real estate agency. Hence, some may refer to the exclusive estate agency agreement as the “exclusive agent agreement”. In this article, we will use these terms interchangeably. If you are ready to find an agent or want to know available options, browse our agent directory.
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Before signing an exclusive agency agreement, you should know the pros and cons of using multiple estate agents. We’ll start with the pros of using only one property agency.
Reasons to Sign an Exclusive Agent Agreement
1. Dedication to Selling Your Property
Agents promoting your property under an exclusive agent agreement know they are the only ones handling your case. They aren’t worried about another agent eventually finding a buyer for your property and earning the agent’s commission.
With their mind set at ease about their commission, they will likely put more effort and time into promoting your property.
2. Better Marketing for Your Property
A motivated agent with exclusive rights to market your property is likelier to put up attractive listings. They may stage the property with nice furniture and hire a professional to take better pictures. Some agents may even take videos, post them, and place ads on social media platforms to attract more and higher-quality buyers.
An exclusive agency agreement may also specify the level and extent of services offered, such as the frequency of advertisements and ‘open house’ sessions. Should your agent fail to meet the commitment to service, you can choose to terminate the agreement.
3. Easier Coordination
Having to communicate and coordinate with multiple agents can be troublesome and time-consuming. Doing so negates one of the key benefits of using an agent in the first place, which is to save yourself time and hassle.
Having an exclusive agent means dealing only with one agent or agency rather than multiple ones. Using just one agent is much more straightforward and saves you time in the long run.
4. No Repeated Listings
These days, most use the same few property listing portals. If you use multiple agents, your property will likely be listed on more than one site.
From our experience, seeing duplicate listings of the same property by multiple agents is a big turn-off for buyers. Potential buyers may think you are a desperate seller trying to quickly dispose of an inferior property or one with underlying issues.
5. Better Control over Asking Selling Price
When you hire too many agents, sticking to your asking price is more difficult. To attract more buyers or to close a deal, some property agents may pressure you into lowering your selling price.
When you work with an exclusive agent, it is much easier to make your price expectations clear. And because the agent is not afraid to lose the deal to another agent, they have a greater incentive to ensure you get the best price possible.
If you’re unsure how much to price your property, you can get a free valuation report from us in just two minutes. With the estimate, you can more accurately set your best selling price.
Should I Work With Multiple Agents Instead?
While all signs point towards hiring one agent, weighing the pros and cons of using multiple estate agents is important. The main disadvantage of hiring an exclusive agent is you cannot use multiple agents from different agencies. That being said, in some circumstances, engaging an exclusive agent might come with several disadvantages.
When you sign an exclusive agent agreement, you are locked in with one agent for better or worse. If you are unlucky enough to engage an agent with lots of other cases to prioritise over yours, isn’t a skilled marketer or, worse, does not bother to create a listing for your property, you will be stuck with them.
If you find a buyer on your own and enter into a contract of sale during the validity period of your exclusive agent agreement, you are still obliged to pay the agent commission. So, if you plan to market your property, entering an exclusive agency agreement may not benefit you.
And if you sell your property to someone the agent referred to you within three months of the exclusive agent agreement expiring, you’re still obligated to pay the commission to the appointed agent.
If you have weighed the pros and cons of using multiple estate agents and want to work with more than one agency, you have to sign a non-exclusive agency agreement with each of the property agencies that your appointed agents are tied to. According to the Council for Estate Agencies (CEA), you only need to pay a commission to the agency whose property agent helped close the deal.
Selling Your Singapore Property in 2024 : Should I sign an Exclusive Agent Agreement for selling my property
Now you know the pros and cons of using multiple estate agents. Whether you sign an exclusive agent agreement or not, finding a good agent you trust is the most important thing. This agent should also be willing to invest time and effort to market your property well.
Even if you decide to work with one exclusive agent, many agents nowadays typically have a team to support them in their marketing efforts. These agents pool their resources as part of a division in a larger agency. In this case, the perks of signing an exclusive agency agreement are magnified.
Some property owners are taking advantage of the record-high HDB and private property prices to make a sale. If you intend to do so, too, and it’s your first time selling a property, you may also want to learn more by reading our guides. Good luck!
