Methods to Sell your Property
Method 1 | Method 2 | Method 3
Methods to Sell your Property
Here is a description of the most common methods
of sale, and the considerations of each:
Sole or Exclusive Agency
The REIQ recommends these methods of selling
property as two of the most effective.
By appointing a real estate agent on the basis
of a Sole or Exclusive Agency agreement, the
seller should limit themselves to one agent
selling their property to potential buyers.
This can be advantageous as the one agent may
be more focused on selling your property for
the best price possible by virtue of the fact
that he or she does not have to compete with
other agents. Under the new Property Agents
and Motor Dealers Act (PAMD) 2000, a seller
can only appoint an agent under this arrangement
for up to 60 calendar days. During those 60
days the seller can decide not to renew the
appointment if the property has not sold.
After the Exclusive 60 day period
However, the seller can agree to make a further
60 day appointment but the renewal cannot be
made earlier than 14 days before the term expires.
If the seller succeeds in selling the property
by their own efforts, they are not required
to pay the original agent any commission if
it is a sole agency. Under an Exclusive arrangement,
the sellers pay commission to the agent regardless
of whether the sellers sell the property themselves.
Why Exclusive Agency
The Sole or Exclusive Agency method is recommended
over the Open Listing method because the sale
of the property is in the hands of one party
only, saving the seller the confusion of having
to liaise with more than one agent. Furthermore,
this will save the seller the money and time
involved in advertising and marketing costs
when a number of agents are trying to sell the
property.
Under any selling arrangement using a real estate agent, the seller and agent must sign a PAMD Form 22a - Appointment of Real Estate Agent (Sales and Purchases) in order to legally set the terms of the selling agreement.
TOP OF PAGEAuction
Selling by auction is also an Exclusive Agency
agreement and is therefore also subject to the
60 calendar day agreement period. The auction
process requires the seller to pay the agent
to arrange effective marketing and advertising
plans to maximise exposure of the property and
the auction date to potential buyers.
Under the auction system, the seller agrees to pay commission to the listing agent if the property sells before the date of the auction, at the auction or in an agreed period after the auction.
Open Listing
An open listing is where the seller lists their
property with a number of real estate agents
in the local area.
Under an open listing agreement, each agent
can sell the property individually or work with
another agent to sell the property.
Only the agent that introduces the buyer to
the property will receive the commission from
the seller.
