Is “The more the merrier” or ”Less is more”?
Have you ever called a property agent to arrange viewing for an unit to rent or buy only to discover that you have already viewed the unit before when you set foot at the unit? Never mind the wasted trip, effort and time, let’s not neglect that feeling of anticipation of finding that ideal space turning into disappointment.
That’s likelihood of such an encounter when an owner choose to engage more than one property agent to market their property. A buyer or tenant will end up looking at duplicate advertisements listed on various property portals or social media.
Does joint marketing^ really equate to maximum exposure for your property? When many property agents are being engaged to market the same property, these real estate agents are essentially direct competitors against each other.
For example:
Number of property agents engaged by the owner to market a strata-titled property = 6
Probability of closing the property transaction by each agent = 1/6
This means the odds of closing the property transaction is now shared between 6 property agents.
If the probability of striking a lottery is lower, will you put in a correspondingly lower stake as well?
Using the same analogy, would the amount of marketing effort put in by each agent be correspondingly reduced too? If all the 6 engaged agents merely put in minimal effort to marketing the property, the property will not be given the desired level of marketing exposure and hence missed opportunities on good offers.
" Would too many cooks spoil the broth? "
Now let’s assume all 6 agents are very committed, driven and have put in the same level of marketing effort and cost as if they have been engaged exclusively by the owner.
In order to be the one (out of the 6 agents) to close the deal or property transaction, time has become a determining factor. Whoever who is able to close the deal first or present the first offer potentially stand the highest chance to closing the deal.
Are these 6 real estate agents competing against time or are they truly representing the owner in his best interest by waiting for the best offer? This is particularly applicable if we are referring to an urgent sale or lease.
It’s healthy competition or is it really so?
With more than one property agents marketing the same property, chances are that some agents might be less motivated after a pro-longed period of marketing the property without success.
Wouldn’t the owner be better off engaging one sole trustworthy, committed, dedicated real estate agent who put in 100% marketing of his/her time to marketing the property and serving the owner in his best interest instead of having a few agents who are likely not giving this owner’s property listing their top priority?
Often an element of luck will also play a huge part rather than effort displayed by the real estate agent when there is no exclusive engagement of a sole real estate agent.
A property agent (A) has been marketing for a property in the initial period and the owner has previously rejected a couple of offers presented by A. When the owner has finally come to terms to accept an offer of S$X, another real estate agent (B) presented an offer that is exactly the same amount S$X as A but at a later date. B’s offer was being accepted instead.
Not only did Agent A incurred loads of marketing cost, A ended up with no deal. While B clinched the property deal with minimal marketing cost.
So is “The more the merrier” or ”Less is more”? i.e., Exclusive engagement or not?
There is really no straightforward ‘yes’ or ‘no’ answer. At the end of the day, it’s the owner’s choice to weigh the pros and cons between engaging a sole real estate agent exclusively or engaging multiple agents.
Undecided and sitting on the fence between Exclusive Engagement and Multiple Agents Engagement?
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^Joint marketing is referred to as having more than one property agent representing the strata owner to market the unit for rent or for sale.
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