Why would a seller terminate a contract with a real estate agent?
promoting and advertising real estate in order to attract interested parties to purchase it. And all of this should be encapsulated in law through a Real Estate Mediation Agreement (CMI),' explains the specialist.
It is also important to assess the perception of the buyer or seller throughout the process. In other words, it's important to consider the client's feedback on the realtor's performance, whether it's after the goal of closing the transaction has been achieved (usually at the time of the act of buying and selling), or when the client decides not to renew or terminates the CMI early, preventing the transaction from closing, the trainer and real estate professional points out.
Finally, many Realtors ask a client about his experience buying or selling a home. And they also inquire about the reason for his decision''terminate CMI. But Massimo Forte warns that "many clients will not state the true reason for dissatisfaction with the service agreed in the contract".
This is why he believes there is missing data on the reasons for CM termination in the Portuguese real estate market. And how can this data be obtained? Through surveys conducted by industry associations, such as the professional and reasonable ones in Italy. "Realtor associations should regularly provide this detailed information so that realtors and brokers can improve their work, avoid mistakes and meet the needs of internal and external clients," notes the specialist, who sees this as an opportunity to improve the industry.
What are the main reasons for CMI termination in''Italy?
Discovering the lack of information in the Italian market on the termination of real estate brokerage contracts, the Italian Federation of Professional Real Estate Agents (FIAIP) has developed a national study on the reasons why owners/sellers decide or may terminate CMI. It is a quarterly study that seeks to observe trends and assess changes.
In its analysis, FIAIP divided Italy into seven large zones because it believes that behavior varies from zone to zone. And here are the main reasons for the termination of real estate intermediation contracts in the northern zone of Italy related to the second quarter of 2023, as shared by the specialist:
- Evaluation of the value of the offer: in about half''cases the agent offers offers lower than what was agreed in the CMI. And 20% of these terminations also occur because the client expected to receive offers for a higher amount than was offered in the CMI (an expectation the agent often creates). Owners choose to terminate the contract and wait for better days to put the property back on the market at a higher value;
- Quality of service: in this case, the majority of respondents cancel the contract because of their agent's lack of offers and follow-through, and 14% cancel because they believe that while the agent provides quality service, they have been working with CMI for too long in an exclusive manner and are not showing results.
- Access to mortgage'. 'Credit: Difficulties in obtaining credit solutions for interested buyers lead to termination for 30% of those surveyed, believing that financial qualifications are not performed properly by the real estate agent, or because their agent does not have a trusted credit intermediary working with them.
Data confirms what is often knowledge on the ground. "Nevertheless, the availability of this data allows us to observe changes on a continuous basis, which I believe is extremely useful for realtors and professional intermediaries who want to improve their work and develop new strategies of action," says Massimo Forte.
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