Can I use multiple estate agents to sell my home?
Reading time: 5 minutes | Posted: 16th Jan 2021
Choosing an estate agent is one of the most important decisions you’ll make when selling your home. They will be the driving force behind your sale and will play a huge part in determining how quickly and smoothly the whole process will go. Most property sales go through using just one estate agent, in an agreement called a sole agency. But what if you would like to appoint more than one?
In the UK, there are two other kinds of agreements that allow you to have more than one estate agent working on your sale. In this blog post, we’re going to take a closer look at each one so you can decide whether using multiple estate agents is the right choice for you.
This is where only the estate agent named on the contract is allowed to list and sell your property. When the sale goes through, they will receive all the commission. Though it is increasingly rare, if you find your own buyer for the property you won’t have to pay anything to the estate agent. As mentioned above, this is the most common kind of estate agent agreement.
Also called a joint sole agency, this involves using two estate agents with the agreement that they will share the commission from the sale (regardless of which agent sells it). This is usually done when you want to target two different markets. For instance, if you were selling a property with stables, you may want to appoint a local estate agent as well as a nationwide agent who specialised in equestrian property.
It doesn’t usually make much sense to enter a joint agency agreement with two local estate agents. This is because they will target the exact same market but will not be in competition with one another as they will both be getting commission when the sale goes through.
This kind of agreement also involves more than one estate agent but with different terms. A multiple agency contract is where you use three or more estate agents, but only the estate agent who secures the sale will get the commission. This kind of contract is often used in situations where you want a quick sale, as the competition between the agents usually moves things along at a fast pace.
Entering any kind of estate agent contract has its pros and cons. Here are the key things to consider when thinking about joint or multiple agency agreements.
As well as having multiple people working on selling your property, you can potentially get exposure in entirely different markets, increasing your chances of a sale. Often, but not always, multiple agents also mean that the sale will go through quicker.
However, it’s good to be strategic about which agents you use if you would like to get the most benefit from a multiple agency agreement. Find out what their marketing strategy entails to see if your property will really be getting more exposure. If each agent simply lists their instructions on the major property portals, then there won’t be an advantage to using more than one. Instead, seek out estate agents who use different marketing strategies or focus on completely different markets to make sure your property will be reaching a wider audience.
The main cons of using multiple estate agents relate to the amount you pay in fees and the potential selling price of your home.
In joint and multiple agency agreements, the commission tends to be higher than when you enter into a sole agency. Joint agency fees average 2% while multiple agency fees are normally 2.5% or 3% (compared to sole agency fees which are usually 1% to 1.5%). You will need to factor this extra expense into your costs before you make a decision.
With multiple agency agreements in particular, you may find that one or more of the agents will try to convince you to take a lower price purely so they can get the commission. This is not as much of an issue with joint agency agreements, as both parties will receive commission when the property sells. However, some hold the position that listing with multiple agents gives a bad first impression of a property that can put potential buyers off.
Finally, there are some practical considerations when it comes to using multiple estate agents. As well as having to maintain contact with each one, they will also each need a set of keys. As they are working separately on the sale, viewings are likely to be more intrusive and slightly trickier to plan your schedule around.
Whether or not you should use multiple estate agents to sell your home depends on your personal circumstances and budget. If the market is good and there are a lot of potential buyers around, there is generally not much of an advantage in opting for joint or multiple agency. However, these agreements can be a great option if you are looking for a quick sale and don’t mind paying more to get it. It’s a big decision to make, so take your time talking to different agents and considering all your options before you sign on the dotted line.
If you are not sure whether you would like to use more than one estate agent, you may prefer to use a sole agent who you only appoint for a specific period of time, for instance six or eight weeks. That way, if you are not happy with their service or you haven’t made much progress, you can turn to another agency without too much of a fuss. You can always move to multiple agents further down the line if sole agency isn’t working for you.Share this: