Definition of Introduction

In legal terms an estate agent is paid for introducing a buyer, everything else is a bonus!

There are a number of different types of agency which have their advantages and disadvantages.

Sole agency

The estate agent is the only agent with the right to sell your property.

You are contractually bound not to allow other agents to try and sell your property during the term of the agreement and will be liable for a commission payment to the sole agent should you do so and successfully sell the property.

If you find a buyer yourself, you don't have to pay the estate agent's commission although you may still have to pay for advertising or a 'For Sale' board.

The main disadvantages of this approach are that you are putting all your eggs in one basket and restricting the potential customer base that has access to your property details.

Sole Selling Rights

The estate agent is the only person with the right to sell your property. It is different from sole agency: if you find a buyer yourself, you still have to pay the estate agent.

This is the type of agency offered by Platinum Property Agents. While it may seem unfair to charge an individual for finding his own buyer, should it occur, in reality a friend or relative often decide to buy a property after they have seen it advertised by the agent but approaches the vendor because he knows them. This type contract protects our commercial interests and removes any scope for confusion.

Of course if you do think that you may have a friend or relative that may like to buy your property. We would be happy to record their interest, prior to receiving your instruction to market your property, and waive our fee should they subsequently purchase.

Joint Sole Agency

Some estate agents offer a 'joint sole agency' contract where two agents agree to share one commission, although the total fee may be higher. T his is where two agencies are working together to try and sell your home. The main advantage is that there will be more than one outlet or distribution channel for your property.

You would pay more in total commission than you would if there were just a single sole selling rights agent, as both businesses will receive a share of the commission when the property is sold.

This method is very useful when it would be beneficial to advertise your property in two geographical areas, or when a quick sale is required and you want two highly motivated agents to work together.

Platinum Property Agents are happy to work with any other agent as required and our contract will default to Joint Sole Agency terms should you decide at a later date to instruct a further agent.

Multiple Agency

You can ask several estate agents to act for you on a multiple-agency basis. Only the estate agent who sells the property will be entitled to a commission. The rate of commission is likely to be higher than for a sole agency or sole selling rights contract.

Most experienced observers would recommend that you opt for a sole agent. Not only does it generally mean a lower commission payment when the sale finally goes through, but a sole agent has a good chance of receiving some reward for his efforts where as under multiple agency there be nothing. If you are going to pay an agent then make sure he's motivated!

In addition, many vendors find that they appear desperate to potential buyers who are alerted to negotiate harder.

Then again, if you are hurry to sell your property, placing the property with multiple agents may achieve maximum exposure in a short time and be more likely to result in a buyer being attracted more quickly. You will have to pay for this perk though, often as much as an extra one percent of commission.

Platinum Property Agents are able to offer a multiple agency contract for certain circumstances however we generally find it unnecessary and prefer to maximise exposure via multi listing which can achieve similar exposure without sending the wrong signals to buyers.

Multi Listing

Multi Listing is the norm in USA and Europe . The vendor instructs their agent to act with sole selling rights agency (the lead agent), however they also allow the agent to invite other agents to introduce potential buyer, normally in exchange for a share of the commission.

Only the lead may advertise the property in the media however the vendor receives the benefit of other agents being able to promote the property to their databases and to the other potential purchasers that contact the office. For the introducing agent he can earn commission without incurring the normal advertising costs or service commitment to the vendor. The lead agent, receives a reduced commission however he achieves a sale for his client which enhances his reputation.

Platinum Property Agents offer Multi Listing as standard included within normal our Sole Selling Right fee. The method allows us to operate as independent estate agents within the Platinum Property Agents while also motivating our colleagues to introduce buyers. The system creates competitive, yet cooperative environment, which benefits our vendors and provide us with a high level of productivity without compromising service standards.

Ready Willing & Able

You have to pay if the estate agent finds a buyer who is prepared and able to buy your property and exchange unconditional contracts. You still have to pay even if you withdraw from the sale and unconditional contracts are not exchanged.

Platinum Property Agents generally expect payment from the proceeds of completion and traditionally your solicitor will forward a cheque to us on your behalf however to protect our commercial interests the fee is due following the introduction of a Ready Willing and Able buyer.

Term of Contract

You would normally instruct an Estate Agent for 12 – 14 weeks to allow them sufficient time to obtain a return on the initial investment made for preparing and advertising.

At Platinum Property Agents the initial period is set by each Estate Agent personally to suit the marketing requirements of the individual vendor.

Termination

If you appoint more than one estate agent to sell your property under a sole agency or a sole selling rights contract, each agent has the right to claim their fee when the property is sold.

During the initial period of the contract you are prohibited from instructing another agent or i f you change from one agent to another, there may be a period when both agents' commissions are due if your property is sold. You should note that even though the initial period has passed most agents require 2 to 4 weeks notice in writing before termination.

Following the initial period Platinum Property Agents require 14 days notice in writing in order for us to withdraw your property from the market. In practice each case is taken on merit and we will always consider your personal circumstances while also protecting our commercial interest where applicable.

Other Services

In addition to selling your property we can assist you with many further aspects associated with moving home;

Buyers Service – If you are looking locally for your next home you with to register in order to be kept up to date with the properties being marketed by any of the Platinum Property Agents.

If your looking further a field or do not have time to trawl every agent, then our buyers search service could save you hassle and frustration. In short we can shortlist properties from any agent in the area you are looking, make viewing arrangements and even accompany you should you require.

Financial Services – The Financial Services Authority, who set out strict guidelines before a broker can call himself or herself, “Independent”, now regulates mortgages. Our resident independent mortgage adviser is authorised to recommend mortgage products from the “Whole Market” offers initial advice without charge. This service is provided by The Independent Practice Ltd. Your home is likely to be repossessed if you do not maintain the mortgage payments.

Solicitors – Via our professional connections we can introduce you local professional solicitors to assist you with the Sale and Purchase of your property.

Further Property Services - Over the years we have established a directory of tradesmen, retailers and professionals that you may find useful during the purchase process or after you have moved in. We hope to point you in the right direction at anytime as you establish your new home.

Disclosure of Interest

While we have links with many professionals and services from which we many derive income, when ever we introduce a buyer to you that has taken advantage of a service from which we expect to receive remuneration we will disclose the interest to you.

In addition where a potential buyer is connected to Platinum Property Agents we will disclose the interest to you and where applicable the individual Estate Agent will be prohibited from marketing your property to the public.

Authority to Instruct

When signing our terms of business you are instructing us to act as your agents when marketing your property therefore you need to be sure that you have the authority to sell. In the main the names on the deeds should be the individuals who instruct the agent however where this is not practical the contract permits an individual to sign on the understanding that any other parties are in agreement and have provided their consent.

Where you are acting on behalf of a corporate body or on behalf of a relative you will be required to demonstrate that you have the authority to instruct. Your Platinum Property Agent can advise you on how best to meet the criteria.

Money Laundering

With effect from 1 st March 2003 Estate Agents are now required to obtain identity verification for their clients prior to accepting instruction.

Your Platinum Property Agent can advise you on how best to meet the criteria.

Over Pricing
When the property is marketed at too high a price, compared to other property available, then interest from potential buyers will be low. If not corrected promptly the property may be on the market for sometime giving a further negative impression. It may then take further price reductions, possibly below the true price, before a sale is achieved.

Mis-Matched Expectations
If your agent has not clearly identified your objective then you may be sold too quickly for too little or not sold

Poor Buyer Qualification
When an offer is put forward the purchasers position is as important as the figure being offered. If the purchaser cannot obtain the finance, within your preferred timescale, then their offer may not be acceptable. The agent has a responsibility to check whether the purchaser has the ability to obtain sufficient finance, which includes checking the status of the chain and their mortgage arrangements prior to advising acceptance of an offer.