The first question to ask a real estate agency is how much your property is worth.
Find out how Engel & Völkers can help: request a free, no-obligation property valuation online.
- 5 min read
Real estate agency agreement: questions to ask the agent before signing
You’ve contacted two or three real estate agencies to sell your property, and now you need to decide which one to work with. Each has provided a different valuation and proposed terms that don’t entirely match, leaving you without a clear set of criteria to make your decision. The agency agreement sets out the terms of your relationship with the agent. Understanding it fully and asking the right questions before signing is the best way to choose the right partner and avoid being tied to an agency that fails to deliver results.
Table of Content
How will you determine the asking price for my property?
What is your strategy for selling my property?
How long will the agency agreement last, and what happens if my property doesn't sell?
Exclusive or non-exclusive agency agreement: which is right for me?
What are your commission fees, and when are they payable?
What results can I expect, and how long will it take?
Why choosing Engel & Völkers means getting clear answers
How will you determine the asking price for my property?
This is the first question to ask, and the answer can tell you a lot. A reliable valuation is based on up-to-date market data, actual sale prices for comparable properties in the area, and the specific characteristics of your property. The agent should be able to explain how they arrived at the proposed price, outlining their reasoning and the market evidence behind it.
Be wary of a common pitfall: an agency quoting an unusually high price without being able to justify it. An inflated valuation is often a way to win the listing by telling the seller what they want to hear, rather than a realistic assessment of what the property can sell for. The result may be a property that stays on the market for too long, eventually requiring successive price reductions. A credible estimate, even if more conservative than you had hoped, is worth more than an unfounded promise.
What is your strategy for selling my property?
Listing a property on a real estate portal is the bare minimum, not a strategy. This question helps you understand what the agency will actually do to find the right buyer: which channels will be used to market the property, what targeted marketing activities are planned, whether the agency has an active network of contacts and, for high-end properties, how effectively it can reach international buyers.
The key distinction is between an agency that actively promotes your property and one that simply waits for enquiries. An agency that uses targeted marketing puts your property in front of the right buyers; one that relies solely on a listing leaves it to the market to generate interest. The difference lies in how concrete and detailed the agency's answer is.
How long will the agency agreement last, and what happens if my property doesn't sell?
An agency agreement has a set duration, renewal terms and termination clauses, all of which should be reviewed carefully before signing. It's worth asking how long the proposed agreement will last and why that timeframe has been chosen. Most importantly, find out what happens if your property doesn't sell within the agreed period, whether the agreement renews automatically, under what conditions, and how freely you can terminate it.
A reasonable contract term should come with clear, measurable objectives. An agency confident in its approach should have no difficulty agreeing on realistic timeframes and providing the seller with a way to exit the agreement if results are unsatisfactory. Be wary of lengthy, restrictive commitments that aren't matched by a corresponding level of commitment from the agency.
Exclusive or non-exclusive agency agreement: which is right for me?
This choice has significant practical implications, and the right answer depends on your circumstances. An exclusive agency agreement entrusts the sale to a single agency. In return, the agency has a stronger incentive to invest time and resources in the property, knowing that its efforts won't benefit a competitor. This arrangement generally encourages a greater level of commitment, particularly in the high-end property market, where marketing requires dedicated investment.
A non-exclusive agency agreement gives the seller greater flexibility by allowing them to work with multiple agencies. However, this can sometimes result in less commitment from each agency, as none is guaranteed to secure the sale. The decision should take into account the type of property and current market conditions. For a property that requires a structured marketing strategy, exclusivity is generally the more effective option, provided it is backed by a clear action plan.
What are your commission fees, and when are they payable?
There are three key points to clarify regarding the agency's commission: the amount payable, when the right to payment arises, and whether there are any additional costs not included in the commission, such as marketing, photography and advertising. All of these should be clearly explained from the outset, with no unexpected charges emerging later.
When comparing agencies, the risk is choosing based on cost alone. The lowest commission isn't necessarily the best value if it comes with a lower level of service. An agency that invests in effective marketing and sells your property at the right price within a reasonable timeframe may well justify its commission. The right benchmark is the balance between cost and service quality, not the price alone.
What results can I expect, and how long will it take?
An agency with a strong understanding of its local market should be able to provide average selling times for properties similar to yours in the same area and explain the factors that influence them. It's also worth asking how results are tracked and how often you'll receive updates. Transparent communication throughout the agreement is just as important as the initial expectations set.
The most revealing question is what happens if no offers come in after a certain period. A reliable agency will suggest reviewing the strategy rather than simply waiting for something to happen. Understanding in advance how the agency would respond if progress stalls can tell you a great deal about how it will manage the entire relationship.
Why choosing Engel & Völkers means getting clear answers
These questions shouldn't put a reputable real estate agency on the spot. On the contrary, they give it an opportunity to demonstrate its approach.
At Engel & Völkers, transparency is the starting point for every relationship with a seller. A data-driven valuation methodology, a clearly defined sales strategy, transparent agency agreement terms and specialist expertise in the high-end property market are all aspects an Engel & Völkers consultant can explain openly, because they are integral to the way the agency works. From this perspective, asking difficult questions isn't an obstacle but the beginning of a relationship built on trust and a strategy designed to deliver tangible results.
The first question to ask a real estate agency is how much your property is worth.
Discover the Engel & Völkers approach: request a free, no-obligation property valuation online.
real estate agency agreement FAQs
It should be based on up-to-date market data, actual sale prices for comparable properties in the area, and the specific characteristics of your property. Be wary of an unusually high asking price that isn't backed by evidence, as it may simply be a way to secure your listing.
More than just listing the property on real estate portals, it should include the marketing channels used to promote it, dedicated marketing activities, an active network of contacts and, for high-end properties, the ability to reach international buyers.
An exclusive agreement generally encourages greater commitment, as the agency can invest in marketing knowing its efforts won't benefit a competitor. A non-exclusive agreement offers greater flexibility but may result in less commitment. For a high-end property, an exclusive agreement is generally more effective.
Focus on the balance between cost and service quality, rather than the fee alone. Clarify the commission rate, when the commission becomes payable, and whether there are any additional costs for marketing and photography.
A reputable agency will suggest reviewing the sales strategy rather than simply waiting for results. It's worth clarifying this before signing, along with the agreement's duration, renewal terms and termination clauses.