We have recently agreed the sale of a one bedroom property in The Cliftons.
The property had been previously listed with 8 different agents on a multiple agency instructions for over 10 months! There had been a handful of viewings over the 10 months, but nothing had ever come of it.
The property was going stale thanks to some lacklustre agency performances, and with so many agents marketing the property, it smacked of desperation.
After removing the listings with all the other agents and instructing Richardsons on a Sole Agency basis, we were able to utilise the correct marketing, strategy and tenacious attitude to aggresively take the property to the market and maximise the asset's potential.
We listed the property at the SAME PRICE that it had been on at previously with 8 different agents and were able to agree the sale within 7 days!
Mulptiple Agency Instructions Don't Work. Period.
While on the face of it, multiple agency instructions may seem like a good idea. Lots of different companies trying to bring as many prospective buyers as possible, right?
In Gibraltar, it is very common for a property to be listed with multiple agents. And in Gibraltar it is very common for properties to sit on the market for months. This is not a coincidence.
Not only will a Multiple Agency instruction mean higher costs for you, the seller, but as you'll see below, many of the common reasons given for employing multiple estate agents simply do not stand up to scrutiny. Opting for anything other than Sole Agency also runs the risk of diluting your marketing efforts and smacks of desperation.
Also remember; if an agent has NO RISK of losing you as a client, there is no requirement to go the extra mile.
Multiple Agency instructions are not ideal for either party: agents or sellers. Estate agents don't like them and sellers often don't receive the service they deserve, despite inflating their costs considerably. It's all just very old hat these days.
So, why would anyone use multiple agents?
Good arguments for doing so are few and far between. If you need to shift your property fast you may consider a multiple agency agreement, but you run the risk of hoisting a red flag marked desperation above your property, which could put many buyers off altogether.
Wouldn't you ask yourself why someone is so desperate to sell if you were a buyer? Wouldn't you wonder whether or not there was something wrong with the property? If you would ask these questions, then you can be certain that others would, too.
Common reasons given for using multiple agents
Many people mistakenly believe that taking on multiple agents will increase visibility, speed up the sale, and ultimately bring in more money once the sale completes, but this can often backfire.
Let's address each one individually:
Increased visibility and reach?
Property portals such as PropertyGibraltar.com, Idealista.com and Zoopla.com make it easy for buyers to search these days, regardless of the estate agents they are registered with, so increased visibility isn't really a good enough reason for sellers to pay higher fees.
Increased viewing numbers?
So there will be more agents attempting to arrange viewings on your property. However the incentive to call prospective purchasers drops if the likelihood of them having already seen the property increases. If a property is on with 10 agents, then there is a 9 in 10 chance that, when the agent calls the buyer, they have already seen it. As sales is a numbers game, this often leads to the agents focussing on other properties where they’re more likely to get a hit. Making 100 calls and arranging 10 viewings is better than making 100 calls and arranging 1.
Faster sale?
While it is true in some instances that signing a multiple agency agreement will result in a quicker sale, but at what cost? Will the faster sale be because of pushy agents fighting tooth and nail to get low offers accepted just so they get the commission instead of their competitors?
Better Price?
Many believe that pitting agent against agent will result in a higher price for their property but, as we saw in the previous point, this is often not the case. It's also worth pointing out that buyers in the higher end of the market are shrewd and will take any sign of a slow-mover to negotiate hard.
Bigger market picture?
With lots of agents on board, you’ll see a bigger picture of the market and will receive advice accordingly, right? Well, each agent will only actually see a tiny slice of the market response to your home and will be in no position to advise you on price, presentation or proportionate properties
Tips for working with a sole agent
Just as buying a home is probably going to be the biggest purchase you're likely to make in your lifetime, selling a property is going to be the largest sale. Therefore, choosing your sole agent wisely makes a lot of sense.
Key things sellers should look out for when selecting an estate agent include:
Photography - Do they use a professional photographer who will present your property as it deserves to be?
Floorplans - Do they use RICS regulation marketing floorplans that allow prospective buyers to see how they would use the space?
Marketing - Do they offer property in an attractive way that broadens reach? Will they ensure your home is seen by the widest audience?
Accreditation - Are they fully accredited by the industry's governing bodies, such as the NAEA or RICS that will hold them to a standard of excellence at all times?
Portals - Do they utilise property portals such as Zoopla, Idealista etc to broaden your reach?
Website - While property portals are important, does the agent have a modern, easy-to-navigate website that is well worded and trustworthy?
Relationship - Do you feel as though you could work with the agent?
If you check all of the above you should be in good shape, but you should still be willing to work with your agent during the sale. The property market is fluid, so be prepared to work closely with your agent during your time with them.
Sticking with your agent and trusting your initial judgement after going through the selection tips laid out above will stand you in good stead and ultimately end up with you getting the result you want...a sale agreed at a price you're happy with.
And above all – don’t sign up to more than 12 weeks Sole Agency. PropertyGibraltar, Zoopla etc display the date your property was listed with that agent. In order to keep your property fresh on portals, make sure you have the ability to change agents if it doesn’t work out. Having a date on a listing that is 6 months old kills the urgency and stalls the interest.
Can we help you?
Naturally, we like to think that we meet all of the above criteria and more here at Richardsons. We strive to make every point of contact your property has with potential buyers perfect and always give our sellers instant feedback, so we think we'd be the perfect sole agent for you and your home...hopefully you'll agree!
If you do, or if you have any questions about our service, get in touch with us today. We'd be delighted to hear from you.