Types of Agency

 

 

 

Agency Comparison Options

 

 

 

1. General agency


Advantages:

 

  • wider coverage-this is usually the reason that vendors and lessors choose it

Disadvantages:

 

  • agents have less chance of making a sale so do not focus on the project
  • agents tend to back "their" buyers and promote the buyer's rather than seller's interest
  • no accountability
  • different stories are promoted by agents
  • campaign often drifts-vendor loses control
  • property is sold before some agents have a chance to work their buyers
  • agents when appointed are forced to "panic contact" their buyers giving out vague information, often misleading buyers, putting them off
  • buyers prefer to participate in an organised campaign
  • buyers often contacted by many agents causing confusion-splitting loyalties, reflecting poorly on the property and the vendor's credibility

2. Sole Agency

 

 

Advantages:

 

  • vendor has control
  • one consistent story promoted to market
  • time for agent to organise and study information so property is properly promoted
  • agents fully accountable and responsible
  • agent is focussed on the project as there is a high probability of remuneration paid
  • purchasers respond favourably

Disadvantages:

 

  • wider coverage-some agents have better relationships with purchasers than others
  • this can be overcome by the implementation of a proper marketing plan, making all buyers aware, the exclusive agent accepting some buyers from other agents and buyers paying other agents, (the agents acting for them)

3. Master Agency

 

Advantages:

 

  • appropriate for multi listings eg portfolio sales and multiple tenancies-where one agent co-ordinates all the marketing and enquiry
  • allows for a wide range of agencies to participate
  • sub agents get a full commission

Disadvantages:

 

  • not appropriate for single property or premises-effectively invokes disadvantages of general agency
  • forces master agent to "panic contact" purchasers and tenants without proper information ... this usually only occurs when master agent appointed for one property or permises