What is CEA Form 5? This is a consent form to indicate your agreement with the agent to sell your property EXCLUSIVELY.
An industry standard, such exclusivity agreements, are valid for up to three months. In an event where you or another agent manage to sell off the property, the commission is still payable to the exclusive agent.
Whatttttt…. why do I even want to sign this?
At first glance, you may think that signing an exclusive agreement with one agent can do more harm than good. So why do you want to sign an exclusive with only one agent?
There are many reasons for this and these are my top 4 reasons.
- Avoid duplicate listings
- Higher commitment of service
- Winner takes all, but owners lose out
- Easier coordination
More agents do not mean more buyers
Having more agents do not mean you have a greater pool of potential buyers coming over to view your place. You may actually have duplicate listings on your property. This will do more harm than good. Your unit will then be perceived as ‘the one that is desperately in need to sell’.
Higher commitment of service from exclusive agent
Having an exclusive agent means that there will be a higher commitment of service. The agent would need to spend his time and money first for advertisement and marketing. Only after the deal is secured, he would receive a payment. Imagine if you are in his/her shoe, will you spend your money advertising on something that you might not get paid for?
So when you hire two or more real estate agents, they will feel the same way too. They will prioritise clients who are exclusively involved. They will not want to risk their time and money on a project that may not compensate them later on.
Winner takes all without exclusive agent
The non-exclusive agreement means that the property agent who manages to close the deal will be the one who will be getting the commission. On the surface, it might be the best way to go. The winner takes all!!
But how will this agent convince the potential buyers? One of the surest way to get buyers is by deflating your property price. A lower price will attract more potential buyers. Thus, you may actually get less than the actual value of the property if you engage more property agents.
Easier coordination between exclusive agent and you
Having an agent working exclusively for you is much easier in the long run. Showcasing your unit is hard work. On every viewing, you have to ensure that your unit is at its best. Working with one agent allows him/her to showcase your home at a convenient time.
On days you need rest or time outside with your family or friends, you can just contact one agent to inform your availability. He can coordinate with the potential buyers to come concurrently at your preferred time.
However, if you have multiple agents, you will need to inform them separately. Given the trust you form during the exclusivity period, he/she can also conduct the open house without you present, which may also be a better option.
One should work with a trusted agent that you can communicate closely with. This makes your property selling journey easier and smoother.
If you have any other questions or queries, I’m just a phone call away.
Find an agent who serves, not sells.