Hello,
I’m just watching some of Mark Rolton’s videos and he mentions the concept of ‘Dual Exclusive Agency’ when it comes time to selling your property:
1. You interview 4-5 agents with the best credentials
2. You select 2 of them
3. You ask them both to market your property and have access to 2 databasesMy Questions are:
– What questions would you ask agents during the interview?
– How would you approach the agent to sign the Dual Exclusive Agency?
– Where do you obtain this Dual Exclusive Agreement for them to sign?Cheers,
David
Good way to get two agents who don’t really care about selling your property as they know another party might sell it before them so won’t invest the effort.
I know quite a few agents and have spoken with them on this exact subject – they’ve all said the same. Only desperate subpar agents would bother with this for a residential house.
This is a little more different in commercial where multilisting can happen due to the different time requirements/greater reliance on your database than physical inspections/internet listing.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I thought it was the other way around…
The agents would put more effort in if they know there is competition.
How does Dual Exclusive Agreement work anyways?
Is it 50% split in commission between the agencies regardless of who sells it, or are you able to structure it so that it gives the agent more incentive to sell?
E.g. 25% for both agencies, and then 50% for the agent that sells?
Let’s say I’m a real estate agent. I’ve got 5 houses to sell at any one time.
One of them is a guy who thinks I clearly can’t get the best deal for him and has another guy to also market it.
I can either spend my time trying to sell that guys house whilst potentially have the other agent find a buyer first – or I can focus on my other listings where I know the effort I put in definitely will translate to getting paid.
Most agents I know would laugh at a lead trying to get a ‘dual exclusive agreement’ – aka a general agency.
They don’t split it, it’s generally the agent who sells gets paid – hence why the agents will generally not bother as they’re there to spend their time making money, not ‘maybe’ getting paid.
These concepts come up in many seminars/books by supposed big names to try make the concept of property investment seem more complex or fancy so they can justify their courses, books, seminars, training material etc, when in reality is that true wealth is generated through property by getting down to the actual reality of buying good quality property at the right time.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
So how exactly does this Dual Exclusive Agency Agreement work?
The agent that sells gets paid the commission and the agent that doesn’t gets nothing?
Or is it 50/50 regardless of who sells?
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