Deciding to sell your property will pose many issues even before the sign goes up.
Well before the property hits the market, there are many agreements and documents that need to be prepared and signed even before the photos are uploaded on the internet. One really important document is the Agency Agreement you sign with the Agent to sell the property. The Agency Agreement sets out all the relevant details which is the effective document that gives the Agent the Authority to list and market your property for sale.
Essential terms of the Agreement include: Commission rate, estimated selling price, length of Authority, additional fees and marketing costs, rebates etc. The term that always seems to get attention is the upfront marketing and advertising costs.
Usual items that the Agent charges for marketing include: signboards, brochures, professional photography, newspaper advertising, brochures, etc. Real Estate Agents vary on how they charge this amount. Some Agents charge an inflated and loaded figure while some are fairer and only charge what the "true cost" is to the Agency.
Agents will often charge an inflated amount to cover the cost of their time if the property doesn't sell or is later listed with another agent. The Agent will often ask for the marketing fee to be paid up front. Check the Agreement to see when they are payable.
Its very important to ask the Agent what specifically is included in the marketing fee and whether this is the true cost of the services to the Agency. You should ask to be provided with any receipts for these costs.
Remember, it is always good to get a few agents in to get an opinion on what is essential marketing and what is a waste of money.
You should always try to get legal advice on the Agency Agreement before you sign, so that you can be properly informed as to what you will be responsible to pay, if the property sells and if the property doesn't sell.
Do your research and be informed.
Written by Dean Carver
for Carver Lawyers - Phone (02) 9773 4550
Real Estate Lawyers
