Merry Christmas and a Happy New Year

So how do we sum up the year?

It hasn't been easy but for me at least it could have been a lot worse.

My biggest issue at present is a lack of stock to sell or let because quite a lot has shifted this last few months albeit at not very exciting prices or rents.

Landlords and sellers have increasingly adopted much more realistic aspirations on the basis that things are unlikely to get better. If there is a hit to be taken its better to take it now rather than possibly take a bigger hit in a few months time.

I am afraid I do not see an improvement in the market for 2012. It will be much more of the same.

I think there is still a general lack of confidence around fueled by higher than acceptable inflation which affects consumers and businesses, rising unemployment particularly amongst youngsters, the Eurozone crisis, banks who are still not lending and a host of other reasons.

In the scheme of things I consider myself quite fortunate. Chris Rowlands & Co. is a one man business which I run from home. My overheads are minimal and I am lucky to have a number of long standing and loyal clients.

I look forward to next year with some optimism tinged with a dose of realism.

I hope 2012 is good for whoever might be reading this.

Best Wishes to one and all for Christmas 2011.

Chris

When does an agent earn a fee?

I do not expect any sympathy here because everyone thinks that property agents earn money for old rope.

I can assure all readers that this is not the case.

Of course some jobs are easier than others. Some deals are concluded quickly and others take a bit longer.

Agents usually work as sole agents where they are the only one instructed or joint agents if another agent or agents are appointed as well.

Entitlement to fees depends on whether the agent or agents have sole selling rights or joint selling rights and this should be specified in the contract between the owner and the agents.

But what about where an owner decides to do the job himself, even after appointing his agent?

That is of course his prerogative but if the agent has sole or joint selling rights then the owner is liable to pay the fee in any event.

Think about it! The agent puts all the front end work into advising on value, marketing, advertising, fielding enquiries, conducting viewings etc and the owner says, well thanks very much but someone has approached me direct so I will do a deal with them.

That is not the agents fault and they should not be penalised by having the opportunity to do the deal taken away from them. Most clients understand this and refer the enquiry back to the agent in any event. They acknowledge that the fee is due even if they conduct the negotiations themselves.

Unfortunately a minority of clients do not understand this. They don't see why they should pay in these circumstances.

As an agent I have learned the hard way that a contract between owner and agent is not only a legal requirement but it is necessary for avoiding these disputes. Relying on old friends or previous arrangements is no help when such issues arise.

Despite being in the business for many years I have had my fingers burned recently on a couple of occasions by not having the agreement in writing. "More fool me" you may think and you may be right. However, as an owner/agent relationship requires trust, I will not act for a client who breaks that trust.

So please don't be offended if I ask you to sign Terms of Agency. It is there to avoid problems, not create them.

My objective is the same as yours. Sell or let your building so that you can derive the capital or the income and I can derive the fee.

There is no point working for nothing.