Sometimes the auction process can get the better of sellers. There is a lot of pressure throughout the campaign and the hopes of a property selling on the day are generally high. There’s also a lot of finger pointing if a property is passed in and in a few cases, an owner might feel the agent hasn’t done the right thing by them and would like to change immediately. But when you sign an auction authority, it’s not like an exclusive sale authority. There are two parts of exclusivity with auction authorities, there’s the time leading to the auction and then a time after.
When you’re signing the authority, you must be aware that you are exclusively listing with an agent for the time you sign until the auction date. The agent will fill in a section which will give them an exclusive period after the auction date as well, in case it passes in. Most agents will right in sixty days as a rule of thumb, effectively locking you into a contract with them for over three months.
This means that you cannot change immediately, you will have to wait until that second exclusive period is over and if they haven’t sold the property during that time, you may change then. Therefore, it’s very important you read through your authority, thoroughly. In a lot of cases, a property sells within two weeks after the auction. An auction is a process that flushes out buyers and brings things to a head, this doesn’t mean it is always going to sell on the day, but it definitely gives you people to work with. This means your agent should have residual buyers and new ones to negotiate with and bring you more offers in a timely fashion.
If your agent has written anything more than thirty days as an extended period, I would suggest to them to lower it. If anything, only give them fourteen days after the auction, this way you’re not locked in for too long and if you feel you have been mistreated and want to change, you can do so without too much hassle.
At the end of the day, if you still feel confident the agent you chose will get the job done and you’ve enjoyed the experience to date, then you don’t have to move, and they shouldn’t be worried about locking you in for an overly extended time.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.