Method of Sale
The REIQ recommends the following two methods of selling your property:
1. Sole or Exclusive Agency
The REIQ recommends these methods of selling property as the two most effective. By appointing a real estate agent under a Sole or Exclusive Agency agreement, a single agent is responsible for selling your property. 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 agent, saving confusion when having to liase with more than one agent. It also saves the seller time and money involved in advertising and marketing costs when a number of agents are trying to sell the property. Under the new Property Agents and Motor Dealers Act 2000 (“PAMD”), 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. The seller can agree to make a further 60 day appointment. This renewal cannot be made earlier than 14 days before the term expires.
Under a Sole Agency agreement, if the seller succeeds in selling the property by their own efforts after the 60 days, they are not required to pay the original agent any commission.
Under an Exclusive arrangement, the sellers pay commission to the agent regardless of whether the sellers eventually sell the property by themselves. Under any selling arrangement using a real estate agent, the seller and agent must sign a PAMD Form 22a Appointment of real estate agent. This form legally sets at the terms of the selling agreement.
Selling by auction is also an Exclusive Agency agreement and so is subject to the 60 calendar day agreement period. The seller pays the agent to arrange an effective marketing plan to advertise the property and its 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.
The auction method is the best way to get market price on the day. The Agent's job is to provide the vendors with accurate and current market information...right now...today, with feedback on price from prospective buyers.
Remember there are buyers and sellers in every market and it is the Agen'ts duty to bring them together.
So...do you want to be behind or in front of your competition? The choice is easy...Auction!
Selling with Seaside Real Estate - your local Agent - gives you the advantage of local knowledge and experience you deserve to obtain the best possible price in the shortest possible time.