If your property is taking a little longer to sell and you’re coming to the end of your agent agreement, you may find yourself at a crossroad thinking about what to do. It’s not unusual that your agent will start to pressure you to re-sign with them to give them more time to sell your property, the questions is do you?
There’s a few things to think about before signing. Firstly, has the property not sold because they told you an inflated price in the beginning or because you wanted to price it a little higher? If the agent bought your listing buy selling you a big price, then they are playing the waiting game hoping your motivations will force you to sell your property at a lower price, they just need to make sure you’re locked in with them. If the agent has been open with price from the start and you’ve asked them to price the property higher, then you should consider keeping it with them.
How long did you initially sign up for? If you initially signed for more than sixty days and the agent has sold your property, I would start questioning why. It shouldn’t take an agent longer then sixty days to sell a property if they’ve campaigned it correctly. An agent who has initially signed you up for ninety or even one hundred and twenty days, should probably not be given anymore exclusive time.
Remember that you do not need to exclusively sign with an agent after there period has run out, they are entitled to a continuing authority which allows them to remain working on the property under an open authority agreement for the amount of nominated days. An open authority allows anybody to sell the property and is not exclusive to that agent anymore.
In summary, don’t ever sign the initial authority for longer then sixty days. Don’t be in a rush to re-sign exclusively at the end of the agents exclusive period, make sure you keep the options open. Always be fair with an agent who has worked hard for you if you have dictated how they go about advertising your property.
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.