Working with a real estate agent is a common choice for individuals planning to sell or rent out their properties. One significant document regulating this cooperation is the exclusive brokerage agreement, which specifies that only one agent has the right to sell or rent the property within a certain period. It's worth taking a closer look at this type of agreement and understanding why it can be beneficial for both parties.
What should you pay attention to before signing the contract?
An exclusive agreement commits the property owner to
work with a specific agent for a predetermined period. Key elements often
included in an exclusive agreement are:
- Property description: A detailed description of the property covered by the agreement, including its features and any limitations.
- Validity period: The duration of the agreement, which is usually a few months but can be adjusted to suit the needs and expectations of the parties.
- Commission: The amount of commission the agent will receive if the transaction is successful.
- Obligations of the parties: Specifies the duties of both the agent and the property owner during the term of the agreement.
- Termination conditions: Provisions for the possibility of early termination of the agreement by either party and the potential financial consequences.
Exclusive properties
Benefits of an exclusive agreement for the property owner
By choosing an exclusive agreement, the
seller gains assurance that their property will be sold in an organized and
focused manner, which usually translates into better terms for finalizing the
transaction. Statistics indicate that exclusive agreements are
significantly more effective compared to open agreements. It is estimated
that the effectiveness of exclusive agreements ranges from 95% to 98%. One
of the main factors is that agents can more effectively control the sales
process and have greater resources for promoting a specific property. Moreover,
an exclusive brokerage agreement eliminates the problem of offer duplication by different
real estate offices, which often introduces chaos to the market and reduces the
credibility of the offer.
Focused efforts on one agent
An exclusive agreement means that the property owner
entrusts the job to only one agent, excluding others from the sales or rental
process. For premium properties, where details, prestige, and exclusivity are
crucial, focusing efforts on one experienced and trusted agent can
significantly enhance the efficiency of the transaction process.
Better promotion and dedicated approach
Signing an
exclusive agreement with an agent opens doors to better promotion and a more
personalized approach, especially in the context of premium properties. Such an
arrangement allows the agent to fully concentrate on promoting a specific
offer. This enables them to develop a personalized marketing strategy that not
only highlights the unique features and benefits of the property but also
effectively reaches a selected group of potential buyers or tenants. Here, home staging plays a crucial role — it is an integral part of the marketing
strategy aimed at maximizing the property’s appeal.
Commitment to engaged actions
An exclusive agreement can
serve as a strong incentive for agents to fully utilize their skills and
resources. While real estate agents strive to deliver excellent results in all
situation, an exclusive agreement enhances their ability to act. It provides
them with the means to conduct thorough market analysis, prepare professional
presentations, and execute more targeted marketing activities to find the right
client for a prestigious property.
Greater control over the process
An exclusive
agreement allows both the property owner and the agent to have full control
over the sales or rental process. This flexibility enables them to adapt
strategies to changing market conditions and quickly respond to client needs,
which can lead to more favorable transaction terms.
Increased trust and professionalism
Exclusivity in
selling premium properties through a reputable agent can build trust among
potential clients. A high level of professionalism, specialized knowledge, and
experience of the agent, along with a focused approach to the transaction, can
reflect positively on the property in the market and enhance the attractiveness
of the offer.
Summary
By signing an exclusive agreement with Hamilton May,
clients are guaranteed the commitment of experienced agents who ensure high
positioning of properties on leading portals. On the Hamilton May homepage and
Google products, offers are prominently featured, increasing their visibility.
Clients can also expect an attractive presentation in the form of virtual
tours, which attracts more attention from potential buyers. Additionally,
exclusive offers are promoted in other agencies, extending the reach and sales
potential.
