Types of Agency
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