Choosing & working with an Agent – Part 2 of 2
Insist on a Guarantee
The best advice to any person thinking of selling a property is to insist on an iron-clad service guarantee – one that gives you the opportunity to terminate the agent’s services WITHOUT PENALTY if you are not receiving the service your agent promised you at the listing presentation – you will find a sample guarantee at the end of this booklet.
All agents will ask you to sign an agreement before you sell your property, But remember that you are being asked to sign their agreement. Many sellers bitterly regret signing that agreement with the agent.
The best agents will gladly GUARANTEE their services.
Avoid agents who do not offer a service guarantee.
Find an Agent You Trust
If you don’t trust the agent, don’t hire the agent. A major ingredient in any relationship, business or personal, is trust.
Before you choose your agent, ask many questions, check references, ask for a guarantee, test their negotiating skills and ask yourself a BIG question: Do I feel comfortable with this person handling the sale of (possibly) my greatest financial asset?
If your answer is ‘no’, do not hire the agent.
Once you decide on an agent, give the agent your trust and confidence, Do not interfere.
Allow the agent to make decisions and get on with the job of finding the right buyer for your property.
If the agent later loses your trust, provided that you insisted he or she sign a guarantee, you can always dismiss the agent and find one you can trust.
The best agents are worthy of your trust. They won’t let you down.
Agent’s Service Guarantee
Name of Owner/s:
Address of Property:
Name of Agent:
1. Selling Price Quote
The agent estimates that the current likely selling price of the property will range between:
$_________ Minimum and $___________Maximum
If the property sells below the minimum price quoted (above) the sellers will be released from any obligation to pay any commission. If the sellers feel there is a valid reason for the property selling below the minimum quoted price, the sellers can still elect to pay the agent; however the amount of commission payable to the agent will be at the sole discretion of the sellers
The current likely selling price is valid for the term of the Agent’s Listing Authority. After expiry of the Listing Authority, the agent shall be entitled to revise the likely selling price estimate and to issue a new Agent’s Service Guarantee, which shall supersede any prior guarantees.
2. Fees and Expenses
The Agent’s fees at the (above) selling price quote will be between: $__________Minimum and $_______Maximum
The fees are calculated as follows:__________________
If, once the agent has found a suitable buyer, the seller is not satisfied that the agent has given satisfactory effort on behalf of the sellers, those fees are negotiable DOWNWARDS prior to acceptance of the offer by the sellers.
Once the offer is accepted by the sellers, the agreed fee shall be binding, with no correspondence entered into at a later time
All fees and expenses claimed by the agent are only payable once a sale has been legally. The sellers will be deemed to have accepted the price IF they sign a contract with a buyer to sell the property.
Sellers are urged to receive legal advise BEFORE signing a contract to sell the property.
3. Period of Agreement
The period of the Agent’s Agreement will be __days, commencing on __________________.
The Agent agrees to release the sellers from the Agency Agreement if the Agent breaches the conditions of the Agent’s Service Guarantee.
4. Bait Pricing
The Agent will not market or promote the property by use of a lower price than what the sellers are willing to accept The agent understands that under-quoting the value of the property, in order to attract buyers on the basis that theses buyers can then be talked up in price, in contrary to the interests of the sellers because it attracts buyers who can only afford the lower price, or buyers who only want to pay the low price.
5. Security at Inspections
The Agent agrees to identify and qualify all people who inspect the property. If the agent conducts ‘Open for Inspections’ and the sellers’ insurance company does not cover loss, damage or theft arising from Open Inspections then the agent agrees to accept full responsibility for any loss, damage or theft occurring during an ‘Open for Inspection’, or which can be shown to have been caused by having had the premises open for inspection to strangers.
6. Cancellation of Agreement
The sellers will have the right to cancel the Agent’s agreement if the sellers are not satisfied with the performance of the Agent – provided that the sellers give the Agent seven days to rectify any concerns. If the sellers’ concerns are rectified, the agreement will continue. Should the sellers decide to withdraw the property from sale, there will be no charges payable by the sellers to the Agent.
7. Buyers found by the Owner
The sellers reserve the right to sell or transfer the property to a party who showed interest in purchasing the property prior to the Agent’s appointment to sell the property. Interested parties known to the seller should be named on this Guarantee. Should one of those so named purchase the property, no fee shall be payable to the Agent.
In the absence of such named parties, the sellers agree that none was known to them at the time of appointing the Agent, and therefore all purchasers from the time of the Agent’s appointment, and during the term of the Agent’s agreement, shall be deemed to have been found by the Agent.
Names of any interested parties known to the Sellers:
8. Special Requests or Conditions
If the sellers have any other conditions they wish to impose on the Agent, they can notify the agent in writing within 2 business days of signing the Selling Agreement. Such conditions will then form part of this guarantee If the Agent does not agree to the sellers’ extra conditions, the sellers will have the right to immediately cancel the Selling Agreement without penalty or charge
Name of Real Estate Agency:
Signature of Agent or Agent’s Representative:
Warning to Home Sellers
This Guarantee is to be attached to and form part of the Agent’s agreement
Where there is any inconsistency between the clauses in this Guarantee and other clauses in The Agent’s Selling Agreement, the clauses in this Guarantee shall have priority
If you have any concerns about any real estate matter, please seek independent advice from a solicitor.