Why estate agents ask for exclusivity when selling Costa del Sol property, the advantages and possible drawbacks, and why sometimes it may be better to keep your options open.
"Always understand what you are agreeing to"
Would I want more than one agent selling my Costa del Sol property?
Should I agree to an exclusive or sole agency?
When you're selling your Costa del Sol property, one of the decisions you may have to make is whether to work with one agent or several. It's an easy assumption to make that more agents mean more exposure and therefore a better chance of finding a buyer. Although it sounds logical, it doesn't always work that way.
There are advantages to working with just one agent:
- You only have one point of contact.
- The buyers will receive consistent information.
- Any changes to the asking price or other details can be made quickly.
It also gives the agent greater confidence to invest their time and money in marketing the property. If several agents are competing for the same sale, each knows that somebody else may eventually receive the commission, and they receive nothing.
There is nothing necessarily wrong with using more than one agent. Two agents may have different buyers or different strengths. But when a property is being marketed by several agencies, keeping control can become more difficult for the owner. This is one of the reasons why you will see some properties on property portals that were sold or withdrawn months ago. The seller may simply have lost track of who was advertising their property for sale.
There is also a point where more exposure becomes overexposure. Seeing the same property advertised repeatedly by different agents can sometimes give buyers the impression that the seller is particularly anxious to sell.
In our experience, it's generally easier to work closely with one agent you trust, who understands you and what you are trying to achieve. But choosing to work with one agent is not the same as being contractually obliged to do so.
Sometimes a seller will already have their property on the market with one or more agents but decide to speak to somebody else because they are not getting the response they had hoped for. There is nothing wrong with that. It can be a good opportunity to take a fresh look at the way the property is being presented and marketed, the asking price, and whether anything could reasonably be done differently.
With this in mind, should I agree to an exclusive agency?
Exclusivity is commonly requested by estate agents on the Costa del Sol. British sellers may be more familiar with terms such as "Sole Agency" or "Sole Selling Rights". Whatever terminology is being used, what matters most is what the agreement actually says.
There can be an important difference between agreeing not to instruct another agent and agreeing that an agent will be entitled to commission whenever the property is sold. Depending on the agreement, you could potentially be liable for commission even if the agent didn't introduce the buyer. You might, for example, sell the property to a friend, neighbour or member of your family and still find that a fee is payable.
This doesn't mean that an exclusive agreement is necessarily a bad thing. An agent investing considerable time and money in marketing your property may reasonably want some commitment from you in return, but before you agree to anything, ask to see the agreement and understand what you are signing.
- When is the commission payable?
- Can you sell privately?
- How long are you committed for?
- Can you leave if you become unhappy with the service?
Some exclusive agreements commit sellers to one agent for a period of three or six months. Again, that isn't necessarily unreasonable, but you should understand what it means before agreeing to it.
Freedom of choice
Personally, I've always believed that the relationship between the estate agent and the seller should work both ways. We prefer to work closely with sellers and, wherever possible, to handle the marketing ourselves, although we do not require sellers to give us exclusivity or commit themselves to us for a fixed period. If the seller wants to use another agent as well, they are free to do so. Equally, if they aren't happy with the job we are doing, I believe they should be free to go somewhere else.
Working with one good agent can make a great deal of sense. Being contractually tied to one agent is a different decision, and whichever approach you decide to use, always understand what you are agreeing to.
If you are selling your property and would like to talk about this further, please don't hesitate to call us on (0034) 952 90 52 00, WhatsApp us, or email info@michael-moon.com.
