There are pros and cons for everyone, so it`s important to choose the agreement that best fits your individual circumstances. We explain the difference between the three, so you can make the best choice for you. An exclusive rating agreement guarantees the commission to the chosen agent, and this has many advantages: all oral agreements must be validated in writing by the Authority and signed by you and the agent. If you have specific agency instructions, join them to the Authority. The agency has the right to collect commissions if the property is sold and can get a commission, even if you sell your property without its help. However, once you are locked up, you are limited to what you can do with the sale of your property. Simply put, the broker is entitled to his commission if the property is sold as part of his exclusivity agreement. It`s that they sell it, you sell it or another agent, it doesn`t matter, you have to pay them. If you sell through another agent, you may be for a double commission. That is where you have to pay the commission of the two agents, even if you have done nothing.
If you sign an exclusive contract with an agent, you are stuck with that agent until the exclusive days expire. You don`t know what this agent`s experience will be at first, so it`s something you don`t think. How many days you are locked up, that is. But, it`s worth watching the days and make sure you keep them to a minimum, in case you get one of those agents who promise you the world and deliver nothing. If you opt for an exclusive agency list agreement, you must choose an appropriate contract term. Agents often request that past agreements be converted into exclusive subscription list agreements. This gives them a guaranteed commission, which can mean they work harder for you. However, if the property is not sold under an exclusive agency list, it is important to determine why the process failed. If this is due to the agent`s services, it may be preferable to sign an exclusive agreement with another agent.
For an overview of certain types of listing agreements, this short video from a WA real estate agent gives good reasons why you should consider an exclusive list agreement. In my opinion, the Maroondah guide misleads its readers by suggesting that real estate agents are experts in real estate agency contracts.