No Lock-In Contract

Let’s face it, people hate contracts! I mean, who wants to be tied down for a certain period of time and not be able to change their mind? Things change, circumstances change, and people fall out for one reason or another.

Now this might seem a bit controversial, but it is my strong belief that contracts protect below average agents and people should be able to change their minds, rightly or wrongly, and not HAVE to stay with one service provider or another. With the way life is changing most businesses have changed with the times. Unlike Gas, Electricity, and even some Internet companies who offer no lock-in contracts, Real Estate has failed to evolve with the times. We still lock sellers into contracts for months on end whether they like it or not, and with the slowing market, some agents are even increasing the contract term instead of making it less. I have heard of some regional agents tying sellers up for an entire year! Surely that doesn’t send a great massage regarding confidence in getting the property sold.

In my opinion, there should be a 60-day contract with BOTH seller and agent being able to give each other 14-days’ notice to cancel or become released from the contract for any reason at all. Notice I said BOTH. If a seller is not taking action regarding the feedback, suggestions, marketing, or improvements needed to be made to help you sell their property, then the agent can sack the seller. We often forget that selling a property is a two-way street. Both seller and agent have to work together to get the job done. If the seller is unwilling to work with the agent, then the agent should have the same right to terminate the contract as the sellers has.

On the other hand, the seller should be able to sack the agent for non-performance. If the contract is for 60-days with a 14-day “get out of jail free card”, how much more at ease do you think sellers are going to be to enter into and sign a contract? Secondly, if the agent is aware that they are not giving the right service, are unable to come up with solutions to problems the sellers are having or are unable to be creative in strategies and marketing to get the property sold, they are going to get the flick. If contracts like this existed, don’t you think agents would work harder, but more importantly, educate themselves more to get the job done and become more strategic in their approach to selling? Don’t you think relationships will be better relying on action rather that promise?

The reality is, the seller does not want to sack the agent and the agent does not want to sack the seller. That is why it is the perfect storm. Sellers have a need to get the property sold, we have a need to make money. If both seller and agent are living up to what they should be doing, then 99% of the time things run smoothly, and everyone is happy. However, a lock-in contract protects average agents and leads people into a false sense of security. So, if the industry is not going to lead by making something like this best practice, YOU can lead by going on the front foot and offering the seller a RISK REVERSAL GUARANTEE. I highly recommend you try this strategy, it worked for me.

If you’re interested in further educating yourself and want to implement simple strategies and systems into your business that will enable you to work more efficiently, earn more business, make more money, and have more time off, make sure you register for my upcoming FREE half-day Real Estate Brilliance webinar.  You won’t be disappointed, that I can GUARANTEE!

For more information, or to find out how Real Estate Brilliance can help you implement systems and strategies to take your business to the next level, click the button below to discover information on our upcoming webinar.

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