Multiple agency agreements: Does it help?

When you sell your home, you have to decide how many estate agents you want to use. Most people just instruct one agent but you can use one, two or multiple estate agents. Here we look at the case for using multiple agency agreements, including the pros and cons and the impact on the fees you pay.

Angela Kerr Director, Editor

In the past, the more agents you had working for you, the more potential buyers you could reach, and potentially the higher the offers you would have got. But in today’s world where people search for properties first and foremost online – mostly via Rightmove and Zoopla – you have to wonder what the benefit really is of using multiple agency agreements. Not least you’ll pay much higher estate agent fees with multiple agency agreements.

Here we explore the pros and cons of multiple agency agreements alongside the other main options for using an estate agent to market and sell your home.

What are multiple agency agreements?

When you’re deciding how many estate agents to use these are the technical terms used to describe the different options:

• A sole agency agreement (where you instruct just one estate agent) – typical fees 1.2% to 1.8% inc VAT
• A joint sole agency agreement (where you instruct two estate agents) – typical fees 3% to 3.6% inc VAT
• A multiple agency agreement (using two or more agents to sell your property) – typical fees 3% to 3.6% inc VAT

Bear in mind that estate agent fees are negotiable.

Find and compare local estate agents with our free tool below: compare success rate, speed of sale and track-record achieving asking price

Sole Agency Agreements

A sole agency agreement means that just one agent will be acting for you. They alone will get the commission if they sell your house. This is the most common type of agreement.

Pros of sole agency agreements

• Having a sole agent can save you money, since sole agents will generally agree to act for a lower commission (typically from 1.2% to 1.8% inc VAT). Typically, the more agents, the more they hike their fees.
• It’s the most common form of agreement because it’s the most simple and it generally works.
• Check the agent will market your property with the main portals – Rightmove and Zoopla. If this is the case you should get very similar online exposure with a sole agent to using multiple agents.
• If you have a hot property, or the market is particularly busy with lots of buyers and few properties for sale, it may make more sense to use a sole agent. Eager buyers will find your house whoever you put it on with.

Cons of sole agency agreements

• Some argue that it may take longer to sell your house if you have a sole agent rather than having multiple estate agents competing with each other.
• Many estate agents boast of having “prospective buyers on their books” and are “constantly networking with interested buyers in your area”. By opting for a single estate agent you may be exposed to fewer prospective buyers not actively looking online.
• You may be more exposed to your agent suggesting a ‘price drop’ if your initial listing on the portals starts to go cold — the Rightmove relisting rules do say that a property will be ‘refreshed’ as a new listing and will be sent out via their email alerts system if it is reduced by an amount greater than 2% of the asking price.
• If you have a unique or niche property, you may need extra help in marketing it. Will a sole agency agreement expose you to the full range of possible buyers?
• Sole agency agreements often come with exclusive lock-in periods, sometimes these can be long, so do check your estate agent contract before agreeing to this.

Beware “Sole Selling Rights“

Not to be confused with sole agency agreements, “sole selling rights” also means you will engage just one estate agent – but there is a catch. If your estate agent has “sole selling rights”, they are the only one allowed to sell your home during the period stipulated. And you will have to pay that estate agent, even if you find your own buyer. So we always recommend avoiding agreements that give the agent sole selling rights.

The Property Ombudsman states that estate agents should as a matter of practice, highlight to the seller the difference between a sole agency and sole selling rights as it can otherwise catch a lot of people out.

Can you have 2 estate agents selling your house?

Yes, you can have 2 estate agents selling your house. Under a joint sole agency agreement, you appoint two agents, who will agree in advance either to share the commission.

Pros of joint sole agency agreements

It usually only makes sense to have two estate agents to sell one property in a joint sole agency agreement if you want to appoint a specialist agent who acts nationally, as well as a generalist local agent – for example, you might want a national agent who specialises in expensive properties, as well as a local agent for your area.

Going for a joint sole agency will mean you cover different markets.

Cons of joint sole agency agreements

• Joint agency agreements usually involve higher fees – more typically 2.4% inc VAT
• There is less sense in doing a joint sole agreement for two local agents, since they will cover the same market, but won’t be competing with each other to seal the deal
• There is a risk with two estate agents, that one might try and free-ride on the efforts of the other

Multiple agency agreements

So what are multiple agency agreements? With multiple agency agreements, you instruct a number of agents to act for you at the same time and agree that the agent who introduces the buyer to the purchase will be the one who is entitled to the fee. Basically, with multiple agency agreements you are putting the house on the market with everyone.

And because the estate agent who actually makes the sale gets the commission, and the others get nothing, they are all competing with each other. This can make the sales process with multiple agency agreements quite frenetic.

Pros of using multiple agency agreements

• With multiple agency agreements you’ll have numerous estate agents competing to sell your property
• You should be exposed to more potential buyers by being in lots of shop windows and with your property details sent to all the agents’ lists of potential buyers if you choose a multiple agency agreement. This may have the added bonus of getting your property seen by potential buyers who aren’t searching online in your exact location.

Cons of multiple agency agreements

• You will usually attract the highest fees with multiple agency agreements – typically 3% or 3.6% inc VAT – about double what you pay for using one estate agent
• You may have to deal with multiple estate agents, who may be particularly keen for you to accept a low offer so they get the commission, rather than risk waiting for a slightly higher offer with all the commission going to someone else
• With multiple agency agreements, you have to give out sets of keys to multiple estate agents and the viewing process is likely to be more intrusive
• Estate agents often claim that listing property with multiple estate agents smells of desperation, and can put potential buyers off
• In a hot market with lots of buyers looking for property, there is much less benefit when you register with multiple estate agents

Does multi agency have to be more expensive?

Typically multi agency agreements are twice as expensive as sole agency agreements but they don’t have to be. Our partners at flyp offer their marketplace service which gives you access to multiple agents who compete to sell your home — for the same price as a single agent.

Flyp believe that more agents means more money for your sale since it gives you:

• Wider buyer reach: Each agent has their own network. More agents means more potential buyers.
• Competitive motivation: Agents work harder when they know others are competing for the sale.
• Offers that are as good as they can be: Agents cannot try to push a weak offer, hoping you will feel compelled to take it.
• Diverse marketing strategies: Each agent has their tactics – access them all.
• No ‘stale’ listings: Rotate your listing between agents to keep it fresh on property portals.

Flyp say they offer a multiple agent approach, but without the cost or headache; selecting and managing the agents. Find out more about their marketplace service. Book a call to get your free Home Sale Assessment.

Flyp multi-agent marketplace service – for the same price as a sole agent – connects your home to the best agents, and their best buyers, for a better sale. Find out more.

Online estate agents

Another option to consider is using an online estate agent which can help you save money on your estate agent fees. To find out more about whether this option is right for you, see our advice guide Should I use an online estate agent?

And with online estate agents it’s just as important to compare their fees, packages and ratings. Our free tool helps you compare online agents and find the best one instantly.

Compare online estate agents – their fees, packages and ratings

Estate agent fee calculator

Part of your decision as to how many agents to use may be influenced by the estate agent commission involved.  Use our estate agent fee calculator below to work out how much commission you will pay your estate agent.  Adjust the calculator settings for the commission rate, and use the slider to select your estimated sale price. If you wish, you can see how this compares to ‘fixed fee’ agents like Purple Bricks or Yopa. Otherwise, you can set the ‘fixed fee’ to zero to see the total commission you would pay.

For more advice on saving money on your house sale, see our guide: the cheapest way of selling a house.

How many estate agents should I use?

A good strategy is to hire an estate agent as the sole agent for six to eight weeks, before opening business up to other agents on a multiple agency agreement basis. This will give the agent you choose an incentive to sell as soon as possible.  If you are switching estate agents, make sure you take steps to avoid future liability- see our guide to changing estate agents.

Pros and cons of changing estate agents

If you’re not happy with your estate agents you may want to weigh up the pros and cons of changing estate agents. But the first question you need to ask is can you change estate agents. This will depend on the terms and conditions in your contract; you may not be able to change at all during the period of your agreement, or you may be liable to pay some fees. At the very least you will need to give a notice period of usually two weeks.

It is important that your agreement with the agent is only for a limited period – the normal period is a 12 week contract, with each side being able to give two weeks’ notice (but you may have to pay a penalty). But you should aim for a lower period such as six weeks, so you can change reasonably quickly if you are not happy with them.

Before signing any contract with its with one or multiple estate agents, read our helpful guide Estate agent contracts what to watch

How do I find the best estate agent?

See our advice guide for tips on what to be aware of when choosing an estate agent and how to find the best estate agent.

You can also find and compare local estate agents with our free tool below. Compare success rate, speed of sale and track-record achieving asking price

Top tips on finding the best estate agent: video

Frequently Asked Questions