Exclusive or open contract? Why contract with an intermediary at all? Doesn't an exclusive contract limit my options? These are questions that preoccupy everyone deciding to sell a property.
Exclusive or open contract? Why contract with an intermediary at all? Doesn't an exclusive contract limit my options? These are questions that preoccupy everyone deciding to sell a property.
What is my benefit from the broker?
Very often sellers think that in order to sell their property, it is enough to post an advert on online property portals and this will bring them buyers. In reality, what happens is that they mostly get calls from brokers and then move on to signing a contract with a broker.
The seller has the right and opportunity to open contracts with many brokers and this gives them the feeling that they have more options. It is very common for a seller to not want to sign any contract with the stipulation, "When you find me a client, I will pay you."
Why is this wrong?
First of all, it is important to have a contract because it outlines all the terms and obligations that both you and the broker have.
As a seller, it is logical to think that more brokers will bring you more buyers. Actually, this is not true because the number of buyers looking for a property like yours is the same.
Many realtors do not lead to many clients.
When they don't have a commitment to you with an exclusive contract, brokers are not sure that they are the ones who will sell the property and get paid accordingly. In this situation, it is pointless for them to invest time and money in selling your exact property. They will all do the same thing, which doesn't cost them much effort and expense - post it on the free sites.
You can do this yourself, and you probably already have. It probably wouldn't be a problem if it wasn't costing you financially without you even realizing it. We'll explain why.
If ten realtors list your property on a portal, buyers see that this property is being offered by everyone and think that since everyone is trying to sell it and failing they probably have something on this property and pass it by.
Even if they decide to look at it, they will probably look for a price discount. Also, it is most common for some realtors to list the property at a lower price than your asking price in order to be competitive with their colleagues. They then naturally receive enquiries about this price and start pressuring you to lower your price. When buyers see different prices on a property they necessarily think they can get an even bigger reduction. This is how you lose money before you have even started negotiating. If you have open contracts with many realtors you will need to take your time and keep track of who is offering your property and how. If your property is offered by only one broker, he will control the information about it in the public domain and will not allow speculation with your money. Working with many brokers creates competition between brokers, not between buyers. This, in turn, leads to the broker wanting to sell the property first to get a commission and thinking of his interests and not yours.
Suppose one of these brokers finds a buyer who is willing to make you an offer to buy. Given that the broker has no commitment to you and is seeking to make this sale happen at any price through him and not through one of his competitors, whose interests do you think he will protect? Yours or that of the buyer? Most likely he will be pressuring you to lower the price so he doesn't miss out on this buyer. But you'll still have to pay him the full commission, even though you're losing money and even though no one is actually working for you. Think about it!
You can do this yourself, and you probably already have. It probably wouldn't be a problem if it wasn't costing you financially without you even realizing it. We'll explain why.
If ten realtors list your property on a portal, buyers see that this property is being offered by everyone and think that since everyone is trying to sell it and failing they probably have something on this property and pass it by.
Even if they decide to look at it, they will probably look for a price discount. Also, it is most common for some realtors to list the property at a lower price than your asking price in order to be competitive with their colleagues. They then naturally receive enquiries about this price and start pressuring you to lower your price. When buyers see different prices on a property they necessarily think they can get an even bigger reduction. This is how you lose money before you have even started negotiating. If you have open contracts with many realtors you will need to take your time and keep track of who is offering your property and how. If your property is offered by only one broker, he will control the information about it in the public domain and will not allow speculation with your money. Working with many brokers creates competition between brokers, not between buyers. This, in turn, leads to the broker wanting to sell the property first to get a commission and thinking of his interests and not yours.
Suppose one of these brokers finds a buyer who is willing to make you an offer to buy. Given that the broker has no commitment to you and is seeking to make this sale happen at any price through him and not through one of his competitors, whose interests do you think he will protect? Yours or that of the buyer? Most likely he will be pressuring you to lower the price so he doesn't miss out on this buyer. But you'll still have to pay him the full commission, even though you're losing money and even though no one is actually working for you. Think about it!