Can I Use More Than One Estate Agent to Sell My House?

12 Jul 2016

by Helen Thring

When it comes to selling your home, you may wonder whether it’s worth employing more than one estate agent. The simple answer is yes, but the real question is why you would want to do so. The decision to hire multiple agents may stem from different reasons, some strategic, while others may reflect frustration with the process. In this blog, we’ll delve deeper into the reasons for using multiple estate agents, the potential drawbacks, and how to navigate the complexities of agency agreements to ensure you make an informed decision.

Why Would You Want to Use More Than One Estate Agent?

There are a few scenarios in which you might decide to hire multiple estate agents to sell your property. Typically, these include:

1. A Lack of Progress with the Current Agent
   Perhaps your current estate agent has not been able to secure a buyer or generate the level of interest you expected. After weeks or even months of not receiving offers, you might consider enlisting the help of a second agent to boost visibility and activity.While your first agent might still be working hard on your behalf, bringing in another agent may open up new channels or marketing strategies that could be the key to attracting the right buyer. In such cases, you might think that having more agents involved will increase the chances of selling.
2. A Promise of Immediate Buyers
   Another reason you may decide to appoint more than one estate agent is that another agent promises they have a buyer ready to purchase your property. On paper, this sounds very appealing and may seem like the quickest route to a sale. However, as appealing as it may be, it’s important to exercise caution.Not all potential buyers are as committed as they may seem. Often, what one agent describes as a “ready buyer” can turn out to be someone simply expressing interest, not someone who is actively committed to the purchase. Sometimes this is just a sales pitch designed to secure your business.
3. To Tap Into Different Markets
   A more strategic reason for working with multiple agents is when different agencies target different market sectors. For example, some estate agents specialise in high-end, luxury properties, while others may be more focused on first-time buyers or investors. In such cases, appointing multiple agents can help you access multiple buyer groups that you may not have been able to reach with one agent alone.
4. Expanding the Property’s Exposure
   More agents generally mean more exposure. Different agents can utilise their own networks, databases, and marketing channels to attract prospective buyers. This can be particularly useful for unique properties or properties in niche markets that may require specific targeting.
5. Seeking Local Expertise
   If you’re selling a property outside your local area, it might make sense to appoint an estate agent that knows the local market intimately. While the initial agent might have a broader, national reach, the local agent could bring additional insight, a deeper understanding of local buyers, and connections that can make a difference in your sale.

What Are the Risks of Using More Than One Estate Agent?

While there are certainly potential benefits to working with more than one estate agent, there are also a number of risks that you should carefully consider before making this decision:

1. Dual Commission Fees
   One of the biggest concerns about using multiple estate agents is the commission fees. Estate agents typically work on a commission basis, taking a percentage of the final sale price. If you use more than one agent, each one will expect a share of the commission, which can reduce the overall amount you receive from the sale.In some cases, this could result in paying double the commission—one for each agent—so it’s essential to fully understand the financial implications before deciding to work with multiple agents.
2. Potential Confusion with Multiple Agents
   When more than one agent is involved in the sale of your property, it can create confusion for both the sellers and buyers. Multiple agents may have different strategies, marketing approaches, and priorities, which can lead to inconsistent messaging or even potential conflicts. For example, one agent may market your property aggressively while another takes a more conservative approach. This can cause mixed messages and even cause buyers to feel unsure about the property. Furthermore, managing relationships with multiple agents can become time-consuming and tricky, especially if each agent is working at their own pace.
3. Overlapping Advertising
   Another issue that arises when you appoint multiple agents is overlapping advertising. If you don’t coordinate marketing materials with your agents, you may end up with conflicting marketing messages or an over-saturation of advertising for your property in the same areas. This can also confuse potential buyers, who may not be sure if the property is available through more than one channel.
4. Sole Agency Agreements May Prevent This
   A sole agency agreement means that you have exclusively entrusted one agent with the sale of your property. If you sign this type of contract and then decide to instruct another agent, you may be violating the terms of the agreement, resulting in financial consequences. Most sole agency contracts also specify that you must pay the agent’s fees regardless of who finds the buyer. Therefore, even if you find the buyer independently, you may still be liable to pay the agent their full commission.This is why it’s important to read the terms of any agency agreement carefully. If you want to work with multiple agents, ensure the agreements are clear about the division of commission and your obligations.
5. Possible Damage to Your Reputation
   If buyers know you’re using multiple agents, it can sometimes give the impression that you’re desperate to sell or that the property is difficult to shift. If buyers sense that you’re not committed to working with one agent, it could reduce their confidence in making an offer, as they may worry that the property will be taken off the market at any moment due to competing agents.

How Do Agency Agreements Work?

Whether you’re working with one agent or several, the relationship between you and your estate agent is governed by an agency agreement. This is a contract that sets out the terms of the agreement, including the rights and responsibilities of both parties.

The agency agreement defines whether the agent has sole agency rights, sole selling rights, or joint agency rights.

• Sole Agency Rights: In this type of agreement, you give one agent exclusive rights to market and sell your property. If you find a buyer independently, you may still have to pay the agent’s fee, which can be a disadvantage if you have another interested party.
• Sole Selling Rights: Here, the agent has exclusive rights to sell the property, but you are liable to pay them a commission fee even if you find a buyer yourself. Be cautious when entering into this type of agreement, as it can sometimes result in additional fees without any added value.
• Joint Agency Rights: This is when you engage multiple agents, and they share the responsibility of selling your property. In this scenario, the commission fee is usually split between the agents. This can give you a broader marketing reach but may result in higher overall costs.

How to Protect Yourself and Your Wallet

If you decide that using multiple estate agents is the right choice for you, there are a few steps you can take to ensure you don’t end up paying more than necessary:

• Review the Contract: Always review the agency agreement carefully before signing. Ensure it clearly outlines the commission structure, the length of the agreement, and any additional fees. If you’re entering into a joint agency agreement, make sure it’s clear how the fees will be shared.
• Clarify Marketing Strategies: Discuss and agree with each agent on how they will market your property to avoid overlapping advertising or conflicting messages. Establish a clear understanding of which channels each agent will use to promote your property.
• Get Legal Advice: If you’re uncertain about the terms of the agreement, it’s a good idea to seek legal advice before entering into an agency agreement. This will help ensure you’re fully aware of your obligations and rights.

When Is the Right Time to Use Multiple Estate Agents?

Ultimately, using more than one estate agent is a strategic decision, and whether it’s the right move depends on your unique circumstances. If you feel that your property needs more exposure or access to different markets, then it might be worth considering. However, make sure you weigh the pros and cons, understand the contractual terms, and communicate clearly with all agents involved.

Conclusion

In conclusion, while it’s possible to use more than one estate agent to sell your house, it’s essential to carefully consider your reasons and the potential costs involved. By understanding the different types of agency agreements, protecting yourself financially, and communicating clearly with your agents, you can make the process of selling your property more efficient and successful.

If you’d like more advice on how to sell your home or need help navigating agency agreements, please feel free to contact us at 01344 860 121. Our team is here to provide expert guidance and support.

For more details please contact us for a chat on 01344 860 121.