property
Island Life - June/July 2010
Country Property
WOODLAND - FARMLAND - EQUESTRIAN
Co-operation is the
Name of the Game
Coalitions seem to be the flavour of
the moment in politics and can be
in the property world as well. Just
as the Conservatives and the Liberal
Democrats have found an effective way
of working together in government,
estate agents can co-operate in the
sale of property. This most commonly
takes the form of a Joint Sole Agency
where two agents are appointed. The
commission (normally 2.0% - 2.5%) is
then divided on a 50:50 basis whichever
agent introduces the eventual buyer
of the property. Whilst this may seem
at first glance to be an odd way of
proceeding it can be highly effective
as the seller gains the benefits both
of agents’ experience, advice and
marketing machines.
It was once often the case that sellers
of more valuable property chose to
have a local agent and a national agent
involved – the former for their local
knowledge and contacts and the latter
Gatcombe House
for their national and international
coverage. These days, with the internet
and particularly the effectiveness of the
various property websites and portals,
the need for a National agent could be
said to be less than it once was and it
is more common perhaps for two local
agents to be selected.
The agents divide the work between
them, perhaps one will draft the estate
agency agreement and prepare the
brochure whilst the other will organise
the photography and prepare the
floorplans before co-ordinating the
launch and the marketing with the
client.
One reason for appointing two agents
is again down to two-edged sword of
the internet. Whilst a button pressed
on a computer in Cowes can mean a
property can be viewed ‘on-line’ in
Hong Kong or Honduras, on the other
hand Estate Agents may not have any
contact from their hottest buyers who
have no need
to register with
all the agents;
simply surfing
the web for
properties
matching their
criteria. By
having 2 local
agents involved
you inevitably
SOLD
increase the
likelihood of
your property
being mentioned
to those buyers actively viewing
when they view other properties. If
a buyer decides at a viewing that a
property is not suitable the agent will
mention other properties that they
have available. Two agents doing this
inevitably increase the chances of a
buyer crossing the threshold of your
home.
The agents co-operate and keep
each other informed when offers come
in to ensure that the best buyers are
recommended to the Client – this is
why it is so important that the share of
the commission is equal so both agents
have the confidence to objectively
assess buyers and do not end up with
a conflict of interest if ‘their man’ is
not the preferred buyer. It is interesting
how often when a sale falls through,
for whatever reason, the other agent
is often able to slot in a replacement
buyer without the property having to be
re-advertised.
The downside, if any, is the slightly
higher commission for a Joint Sole
Agency as opposed to a Sole Agency
but on a £500,000 property this
difference is often only £2,000 - £3,000
and at that level most sellers will lop
that amount off a Guide Price to take
a cash offer without blinking an eye.
So if you want to give your property
the most chance of selling as these
challenging economic times continue;
then consider a Joint Sole Agency to
widen the net.
www.creasey-biles-king.co.uk
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