“HOW LONG?!”

 
Sole agency agreements have always been one of my biggest gripes with estate agencies and this week, I had a classic example of why some of them justify the bad reputation they get.
 
We received instructions to market a 3 bed terrace house in West Watford. The owner had just finished his sole agency period with his previous agent. I’d love to name and shame them but probably best I keep my powder dry. This particular agency had tied him into a 20 week sole agency period.  YES, FIVE MONTHS!!!! As if this wasn't bad enough, they had also quoted a multi agency rate of £10,000k. Roughly 5% + VAT of the advertised price.
 
I don't profess to be the cheapest agent in town and I'm not advocating that the agents with the lowest fees are the best, far from it generally. As in any industry, you usually get what you pay for. However, there is a level of fee that I consider fair and reasonable and that has to then be justified by the service delivered. Suffice to say, despite having 20 weeks to get a sale, this company has failed miserably.
 
My own policy on sole agency periods is that I don't believe in them full stop! We have a two-week notice period meaning that our clients can give that 2 weeks notice whenever they wish. On that basis, you can be confident that we’ll consistently deliver a level of service & marketing to endeavour to sell your property at the best price, or you can go to another agent.

Agents who want even an 8 week sole agency contract are giving themselves such a safety net for underperformance, that it undermines any claims they’ve made about how they will definitely sell your property. If they truly believed it, why do they tie you in? Don't accept it.

Homeowners are generally more concerned with negotiating the fee than the sole agency period. The fee you pay is an agents’ incentive to perform. Don't be so concerned with reducing the fee, but DO make sure they’re under pressure to merit it.