As much as I suggest to clients not to be locked in with an agent for extended lengths of time, there are some sellers who think that appointing multiple agents on a General Authority, or open authority as known to some, is a good way to keep agents on their toes. This is one of the worst ways to sell your property for one main reason, your agent isn’t working for you anymore, they are working for themselves and will try to get the offer over another agent at any cost.
The logic seems sound, by having agents compete for the sale, but agents are already busy beings and the first sign of an unmotivated seller is not putting the effort into choosing an agent that will get them the best price. This means, you would go pretty far down on the priority list across the board of appointed agents and if by some chance a buyer pops up out of nowhere, the agent will be pretty quick to get an offer out of them and lock it in.
Another scenario is when you choose multiple agents in the same area, you’ll find that buyers are spread across meeting all or most agents in hunt for the perfect property. They get pushed over to your listing by one agent and then on a follow up call from another. As buyers are out there for themselves to get the best price they can, and they are definitely not loyal to agents, what they do is shop the agent. This is when they want to buy the property, but now they must figure out which agent is the most cunning to push a low offer through and has the highest chance of getting the vendor to accept. By simply low balling the first offer across the agents, some will defend your price, but you’re guaranteed one will write it up and tell you every reason to sell. They’re quite persuasive as well.
You will miss a lot of buyers as well. Multiple listings on real estate portals such as realestate.com.au or domain.com.au can work against you. Once buyers notice that you have multiple agents working on your property against each other, they can feel that you are unmotivated and won’t dedicate any time to viewing your property. They may also be confused regarding who to contact to view the property and put it in the too hard basket. Unfortunately, you have plenty more competition out there of all your neighbours selling, so instead of wasting time with somebody who doesn’t seem motivated or unsure about what they want, they will put it aside and focus on properties that they have an opportunity to secure.
Your best option if you want to work with multiple agents is to do a conjunctional sale with two agents. If you’re actually stuck between who to represent you and want to work with two parties, then go with both, make them work together and the fee is split evenly between them. This would be your best option going forward and will have two agents working together to get you the best price.
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.