Let us analyse a home for sale by owner who does not work exclusively with an agent.
The biggest issue here is the time needed to deal with phone calls and filtering out the noise. Endless phone calls, most of them from agents can be very time consuming.
Obviously, the homeowner wants to sell so will agree to multiple agents working on the sale. This often leads to an incorrect flow of information. Different listing prices, inaccurate information about the property are two of the major issues with multiple agents listing.
If multiple agents are involved there is also less co-operation between the agents as they are all competing for the sale.
Finally, should a potential client contact the owner and after visiting leaves, most often the homeowner will not stay in contact with that buyer. Should, for example, there be a price reduction the homeowner would most likely not contact the buyer and update him, which might have been the main reason why the buyer walked away from the property in the first place. The lack of follow-up could reduce the number of possible buyers drastically.
Exclusivity, taking the leap of faith.
Explaining the concept of exclusivity in real estate terms is quite simple. It means finding an agent you trust with the process of marketing your property and managing the flow of clients, both private buyers, and agents, to get the best possible offer on the property.
The exclusive agent is responsible mainly for marketing, not only selling, the property. Marketing means advertising across all the different media; social media, printed media and direct contact with other agencies. If done correctly there will be many clients contacting the agent for information.
Filtering out the noise from these clients is the responsibly of the agent. Providing as much information as possible in advance and asking important questions could eliminate wasted time of clients who visit the property and the property is not what they were expecting, or clients who love the property but have not secured a mortgage and can’t move forward with the purchase. Buyers may work with many agents and this filtering could avoid the same client arriving with different agents. Basically, the homeowner is relieved of all the noise generated by the marketing and only sees the relevant clients in his home.
Finally, as the marketing process moves along the exclusive agent can keep all relevant parties updated with changes to the listing and could keep potential buyers interested throughout the process. Should an offer be made the exclusive agent has the knowledge and experience in negotiating on the homeowner’s behalf which can get a better price for the homeowner.
An exclusivity is a tool, which if used correctly, can benefit the homeowner tremendously. All the homeowner needs to do is choose an agent that they trust and then let the process run.
Finally, exclusivity is not a marriage. After the specified period, the homeowner can then re-evaluate and choose a different direction if need be.