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There are five methods of selling
your property, the first four involve going through a real
estate agent:
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(i) Sole or Exclusive Agency ...
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.
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.
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The Sole or
Exclusive Agency method is recommended over the Open Listing
method.
What
your agent should do for you when sell your property.
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(ii) Multilist ...
A Multilist agreement is also an exclusive agency agreement
where the seller appoints one agent and that agent agrees to
work in conjunction with other Multilist agents in order to
sell your property.
When the property is sold, the agent's commission is divided
between the original listing agent and the agent that actually
introduced the successful buyer to the property.
The total
commission payable by the seller is no higher than it would be
if it were only being paid to one agent.
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(iii) Auction or Tender ...
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.
The same conditions that apply to the auction process will
also apply to the tender process.
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(iv) 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.
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(v) Do-it-Yourself (DIY) ...
As the name implies, this method describes a seller doing the
job of the real estate agent, who takes on the tasks of
marketing and advertising a property as well as introducing
and arranging for prospective buyers to inspect a home.
DIY also requires the private seller to negotiate a price tag
on their home with prospective buyers and then finally
arranging the Contract of Sale with the buyer and organising
legal and financial arrangements for the transfer of the
property.
This method of selling is not highly recommended as it is
considered too risky for amateurs to do the job of the
licensed professional - especially as they are dealing with
their most valuable asset. Market analysis, valuation,
marketing, advertising and negotiation are all skills in which
experienced and licensed real estate agents are professionally
trained.
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The DIY method
of selling is not highly recommended as it is considered too
risky for amateurs to do the job of the licensed professional.
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