There’s so much to think about when it comes to selling your home, including the number of estate agents you should work with. The decision you make will impact the fees you pay, and the amount your property will sell for. Read on to find out what it means to have a multiple agency agreement.
What is a multiple agency agreement?
A multiple agency agreement is a situation in which you have three or more estate agents all acting on your behalf at the same time. In essence, it means you’re putting your home on the market with several different agents.
How can it benefit me?
Multiple agency agreements are a ‘fast sale’ option; if you need to sell your house as soon as possible, you might choose this type of agreement to maximise your property’s exposure to potential buyers.
What are the problems with using multiple agencies to sell a house?
Multiple agency agreements come with a few disadvantages. For one, appointing more than one agent to sell your home means that each agent is competing with the others, as only the agency who makes the sale will get a commission. This can make the process of selling your property quite frenzied.
The prospect of competition among agents can also mean that those you choose to work with might encourage you to accept a lower offer rather than risk losing their commission by bartering for a higher price. Working with a sole estate agent is more likely to ensure they have your best interests at heart.
Another factor to consider is that multiple agency agreements typically attract higher fees, usually 2.5% or 3% plus VAT. You’re also required to give out keys to a number of different agents rather than just one, making the viewing process more intrusive if you’re still living in your home at the time of selling.
Finally, it might be worth considering if you really need to sell your house quickly. Using multiple estate agents can come across as a desperate attempt to sell, which could potentially put buyers off.
Need more advice on selling your home? Read our helpful guides for everything you need to know about putting a property on the market.
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Correct at time of publication (2nd October 2019). The views and opinions expressed herein are those of the individual contributor and do not necessarily reflect those of the Chancellors Group of Estate Agents Ltd or its subsidiaries. References to legislation, best practice and other matters with legal implications such as fees, rules and processes are included for information and editorial purposes only and are not authoritative, nor should they be interpreted as advice. When in doubt you should only take advice from an industry professional or solicitor where appropriate. E&OE.