When it comes time to sell your Australian home, you may be confused on the types of contracts and agreements that are available to you. Most real estate agents in Australia like to use the typical exclusive agreement, but there are other options available. Until you sign a contract with specific terms and agreements, you are free to choose which type of selling option you’d like to use.
Exclusive Agency Agreement
An exclusive agency agreement is when you sign a contract granting one particular real estate agency the rights to sell your home for a specified timeframe. This means that you cannot sell the home yourself or commission a competing realtor to find a buyer. Once the specified timeframe is complete, you are free to renegotiate your current contract or move onto another agency.
Sole Agency Agreement
This agreement is similar to an exclusive agreement, except you now have the right to sell your home by owner. When agreeing to this selling option, you are granting only one agency the right to sell your home, but you are still giving yourself the chance to find your own buyer and avoid paying the commission fee.
Multiple Listing Agreement
This is another common agreement between a seller and an Australian real estate agent. This agreement has your house listed in various real estate publications and online, and it gives any realtor the right to secure a buyer for your home. The commission is split between your agent and the buyer’s agent, meaning you may pay a higher commission percentage than if your agent secured the buyer. But it’s one of the more promising ways to sell your home quickly.
When you have an open agreement, you are allowing multiple agencies and real estate agents to try and find a buyer for your home. This is a competitive way to sell a home, and not many Australian real estate agents want a seller to choose this agreement because there are no guarantees that an agent will be rewarded for their work. Since agents don’t react favourably to this type of agreement, your home may sit on the market longer than you’d like.
Selling at Auction
An alternative to the traditional real estate agency route is an auction. You still work with an agent to market your home to potential buyers, but you don’t have to go through the process of letting buyers view your home or sitting and waiting for a sale. This is a good choice if you’re looking to sell your home quickly or want to unload your assets for a competitive price. If you’re unsure about the selling option you should choose, talk with your Australian real estate agent about all of your choices before signing a contract.
Some people believe in a for sale by owner option but the value your real estate agent provides could help you sell your home much sooner and for a better price.