Signing with an agent

If you vetted a handful of agents and decided which one to go with, the next step is to sign an agreement or authority with that agent.

The authority is a legally binding contract, so get a solicitor or conveyancer to look it over before you sign. It will detail all elements of the sale, including:

• How much commission you'll pay the agent for managing the sale of your home. It's usually a percentage of the sale price. It can be negotiated.
• Under which circumstances the commission is payable. For example some authorities will stipulate that you have to pay the commission even if you manage to find a buyer without the agent's assistance.
• How much you agree to spend on marketing your home.
• The selling price or reserve price of your home.

Before you sign, check if you'll be hit with charges even if your home doesn't sell.

Private treaty or auction?

Your agent will recommend a method of sale – either private treaty or auction. As usual, find out the agent's reasons for the recommendation.

Private treaty – is when you set the price and interested buyers make offers for your home, not knowing what other buyers think it's worth. Your agent negotiates with the potential buyers on your behalf.

An auction– is a more public affair where all potential buyers come together at the same time to bid on your property. The set date is supposed to encourage potential buyers to act quickly. There are usually extra costs involved with this method.

Your agent's responsibilities

Once you've signed an authority, you can then expect the agent to:

• Create and manage the marketing campaign.
• Manage inspections, show people through your home and make follow up calls.
• Negotiate the selling price.
• Facilitate the actual sale.
• Manage the auction process.

When contracts are exchanged the agent should also arrange a trust account for the deposit.

Continue to information about setting a price on you home.