Signing an exclusivity agreement locks you in for 90 days and means you are with that agent for that time period and you can’t accept offers from other agents or sell your property yourself.
At Apartment Specialists we don’t lock you in as we believe that if we are doing our job properly you won’t want to leave us.
Good day. My name is Andrew Murray. Today I’m talking to you about, what is the minimum real estate agreement period, i.e. timeframe? As a vendor, when you’re going to list your apartment, how long are you locked into an agreement?
Traditionally, in New Zealand, there’s always 90 days which is basically three months. That means, when you choose an agent, you’re with that agent for 90 days. And you can’t get out of it. Even if you sell it yourself, even if another agent approaches you with a better offer, and that agent doesn’t want to do a conjunctional, you still can’t do the deal. So you’re locked in for 90 days. That’s why it’s very, very important to choose the right agent, and get the right legal advice.
Now, at Apartment Specialists we are very different. You’re not locked in. So you haven’t sold any to an agreement. We need all other agents to bring offers to our vendors. But what makes us very different is, if you’re not happy with our service, if you don’t think we are delivering or doing the very best for you, you can give us five days notice and fire us. It seems quite radical. A lot of real estate agents said, why would you do this? That means that the owner’s just going to basically sell to the next door neighbour, or undercut you? And the thing is, what a lot of people don’t realise is, the public is more worried about the real estate agent.
Basically, to answer your question again, a real estate agent agreement is 90 days and you are locked in for 90 days. Yet with us, obviously it’s different. But that is the general period amongst New Zealand and standard with all agencies and all department agencies except for us. We don’t follow that rule.
I hope that helps you out and and I hope you get a very good price when you look at the agreement to make sure you are not getting locked into anything you are not aware of.
In this podcast, I discussed about the myth of the sole agency and the reason why you need to get out of it.
Andrew Murray, Apartment Specialist, the Auckland apartment market. Today, I’m going to be talking about the myth of the sole agency. The fact that, you can’t get out of it. The thing is, you can.
I often get called by this guy, “Andrew, I’d like you to represent me. You’ve been recommended by Joe Blogg because the agent that I’m with at the moment is just not working for me”. For number of reasons, it could be promises they haven’t kept. Or it could be that they’re just not getting along.
Now, real estate is an interesting industry. And the Auckland apartment market’s where you can’t try before you buy. The agent promises the world – and if they don’t deliver – you’re stuck with them for 90 days. The same thing is this: if you’ve got a vendor that has to sell on a certain time frame for various reasons – generally because of financial commitments – and it means they have to go through an agent they don’t want to go through or they don’t feel are doing the best job for them. And often, this leads to accepting offers that they didn’t want to accept.
The key thing here is to remember as the vendor, you are in control. Make sure you are always in control because the problem with the real estate industry – especially in apartment market from my opinion is – the vendor loses control when they sign that sole agency and they need to get that control back. They need to better dictate the terms. They need to be able to hold the agent accountable.
So when you find the agent who you want to represent you, ask to have a clause added in the agreement saying you can terminate that agreement if you feel they’re not representing you or they’re not delivering what they promised. So it’s their business loss, because what other industry can you actually lock someone in? So remember that. And that should really, really help you because it’s also going to make them work harder. Because they know that if they don’t, they’ll lose the job or they’ll lose you as a customer. And that’s how it should be as it is in every other industry.
I hope that helps. That’s a really, really an important one that I feel very passionate about. And so remember that.
Next week what I’m going to do is, I’m going to talk about another myth – that you know your apartment is getting sold or undersold to a trader to be resold because you don’t. And I’ll give you a few tips on how you can tell.