Many people wonder whether the request by real estate agents to be given exclusivity for a specified period of time is a legitimate request, and more importantly, how can it serve the purposes of the property owner? In order to understand how exclusivity works, as well as its benefits, we need to understand which resources are necessary for an agent to market a property in a competitive market.
As is commonly known, realtors receive no salary other than a success-based fee, and therefore any investment and work that goes into marketing a property entails a certain amount of risk.
A property assigned exclusively to a particular agent is usually limited to a six-month period, or earlier in case of a deal made before that time limit. This time frame allows the exclusive agent to express confidence in himself and his abilities, alongside confidence in the property and its advantages, and to invest time and resources in order to create the best deal for both the seller and the buyer.
There are a number of clear advantages to granting exclusivity to an agent in the real estate market:
Saving time – When placing an asset for sale or rent, the phone does not stop ringing, and you find yourself repeating the same answers to the same questions. How big is the apartment? Is there an A/C unit? Are there electric shutters? What is the cost of municipal taxes? And how are the neighbors? When dealing with an exclusive agent, you will only need to answer these questions once, and from then on it is the agent who will handle the large volume of calls and potential tenant / buyer visits.
Filtering – Anyone who has sold an apartment is familiar with the promenade of visitors who come – those who are interested, ask questions and estimate prices, but who ultimately have no real intention of buying the property. A professional agent who is committed to a property knows how to filter through the potential buyers who show genuine interest in the property, and will and invest time and resources moving forward with them.
Effective advertising – In the Internet Age, it is not always clear which advertising channels are the most effective for you. Sites like Yad2? Free advertising or paid ads? Or maybe local press? Israeli law protects property owners who place their assets with exclusive agents, and mandates that agents advertise the property in at least two advertising channels. Beyond this legal obligation, a professional agent will bring with him knowledge and familiarity with the various media outlets, based on his experience and ongoing work with the various advertising channels, and will also bear the responsibility of financing the advertisements. When the property is entrusted to him with exclusivity, he will not have a fear of investing without reaping the rewards, and will use every effective tool to bring about the sale of the property in the shortest time.
Professional guidance – real estate is a profession for all intents and purposes, and carries with it a great deal of knowledge and theoretical and practical tools for executing transactions in the market. Obtaining property ownership information (TABO registration documents), removal of “warning notes”, obtaining architectural plans from the city engineer – all of these complex procedures are often required during the sale of a property, and an agent knowledgeable in the tools of the trade, and who has good standing with the relevant authorities, can move the process along with maximum efficiency.
Among all of the advantages and benefits of working with an exclusive agent, it is important to remember that this is a greatly significant economic transaction, and alongside professionalism, it is important to choose a reliable person with whom you will feel comfortable, and in whose hands you will entrust the keys to your property. Recommendations from friends and family, as well as the old method of word-of-mouth have been and remain the best way to choose a professional in any field, and that certainly holds true in finding a real estate agent for long-term contact.