Will using multiple estate agents at the same time sell your home faster?
If you're not instantly run over by the stampede of potential buyers flocking from miles around to view your home, that for-sale board can soon become a frustrating beacon, mocking you each time you see it. A constant reminder that you've still not sold.
When you're trying to sell your property, your focus is firmly on getting the sale. This is the main obstacle to your house move, the biggest hurdle between you and the house of your dreams, so it's understandable that homeowners get frustrated if they don't sell quickly.
After the excitement of making the big decision to move, there is a flurry of activity. Preparing your home, having valuations, and once you've chosen your agent, there are photoshoots, video footage and brochure production before the launch when you can see your home in all its glory on the agents' website. You may even have a shiny new 'for sale' board in your front garden. A daily reminder that you are trying to sell.
If you're not instantly run over by the stampede of potential buyers flocking from miles around to view your home, that for-sale board can soon become a frustrating beacon, mocking you each time you see it. A constant reminder that you've still not sold.
Often, when a buyer isn't found swiftly, a seller will search for other options and new ways to generate the interest they need to sell their home. Clutching at straws and coming up with crazy suggestions to capture the elusive buyer's attention.
And cleverly timed, it's at this moment that letters begin to land on the doormat from those instant property purchase companies. You know, the ones that prey on the desperation of homeowners, promising instant sales to cash buyers but ultimately offering a fraction of the property's true value to offer a quick fix to those sellers in need.
Most sellers are not swayed by the meagre offers that these companies will pay, but they may be starting to think about the marketing of their property and how they can improve their situation. Perhaps another agent could do something differently? Maybe that will find them a buyer?
But the current agent has been working hard, and they haven't done anything wrong; they just haven't found the buyer yet, right? So, they begin looking for a second agent to work alongside the current agent. If one agent is good, two must be better, no?
There are many reasons that a seller will instruct multiple agents, but is it the right thing to do?
The terms of engagement between the seller and the agent will specify how the agent will work. Some are very comfortable marketing a property simultaneously with another agent, but some will not. Before doing anything, check the terms of your contract and speak to your current agent - otherwise, you could end up liable to pay the fees twice!
So, what are the circumstances that you could have two agents, or more, working for you to try and sell your house?
Joint: Having more than one agent can take the shape of joint marketing, where the agents work together and agree to split the fees on completion. This is often a 70/30 fee split, so the seller's cost for the property sale is shared between the agents, with the higher amount going to the agent that found the buyer, but it can be any split that the agents agree to. With both agents earning something regardless of whether they sell the property or not, there is no real urgency to getting your home sold.
Multiple: Alternatively, both agents can try to sell your property and the one that 'wins' earns the fee. This creates competition between the agents, racing to sell your home as quickly as possible. The losing agent will have to pay marketing costs without generating income for the firm. Again, some agents may shy away from this option, and also, although it seems to be an excellent option to get a quick sale, timescale is the focus here, not price, so it could result in a lower offer.
There are pros and cons to having more than one estate agent:
Pro-
Exposure: Having more than one agent marketing will mean the property is promoted to both databases of potential buyers, exposing it to more people. If the marketing materials are excellent, and the methods of promoting the properties within the agencies are up to scratch, theoretically, the property should receive more interest than it would with a single agency.
Con-
Desperation: If buyers can see that a property is being marketed with more than one agent, they may think the homeowner needs a quick sale, perhaps even to the point of desperation. Of course, that won't encourage someone to buy a property unless they actually want it, but it can give the impression that the seller needs a quick sale, and therefore any offers may be a little lower.
Then there is the million-dollar question - if the first agent didn't sell the property, should you stay with them, or is it time to try an entirely new approach?
Has the agent genuinely tried everything to find a buyer, or is it time for a change?
Multiple agencies could expose your property to a broader market. Still, it can also seem a little desperate, meaning the buyers may feel they have more negotiating power and offer less for the property.
Unless the current agent has not performed (which would raise the question of why you'd want to stay with them?) or the new agent can offer something different in terms of service, technology or exposure to the market, marketing with multiple agents will most likely result in a sale in a shorter time but at a lower price. This further begs the question, should you market with a second agent or simply opt for a price reduction?
If you're on the market, unable to find a buyer and are beginning to feel frustrated, contact our property experts to see what can be done to get you sold.
This could be anything ranging from a rejig of the marketing, a price reduction, or a change of agents, or maybe nothing needs to be changed, and you simply need to have faith. Either way, our team can point you in the right direction and are happy to help.