Why granting a Sole Mandate makes sense
What is a Sole Mandate?
This is a written agreement between the seller of a property and an estate agency to exclusively market the seller’s property under certain defined terms and conditions.
Granting a sole mandate to a qualified and active local estate agent is in most instances the most effective manner in which to get your property sold.
When you grant a sole mandate (sole agent), you have one estate agent and estate agency who are responsible and accountable to you as their client.
Chas Everitt Estate Agents are duty bound as an example to prepare a comprehensive Property Marketing Plan for clients who have granted them a sole mandate.
This Plan will include a detailed Comparative Marketing Analysis or CMA which will give you access to a host of relevant information to ensure you price your property correctly based on local area real estate data compiled on market activity and trends.
This is particularly important in tough markets and economic conditions as incorrect pricing of property can result in both delayed and reduced sale prices. When you work with a sole mandate your agent is working in your interest – and will give you up to date and accurate information on an ongoing basis to assist you in making the right decisions.
It’s also a fact that there is a limited amount or “pool” of property buyers in the market at any particular time – and a number of agents work out of this pool. Have a number of real estate agents working on the same property for sale doesn’t mean there are MORE buyers for your property.
A sole mandate allows the appointed estate agent to create competition amongst potential buyers and give them the time to negotiate the best possible price for you.
Why Open Mandates can cause problems
Many South African property sellers believe that giving all and sundry their home to market affords them wider scope, however very often all this does is delay the sale of the property and can cause both frustration and complications.
Granting an “Open Mandate” or giving multiple estate agencies or estate agents the right to market their home very often means that the estate agents selected are not as committed to the sale of the property and are, as a result, less likely to spend more marketing Rand on the property to ensure a sale.
Granting an open mandate or giving a number of estate agents the opportunity to market your property means you increase potential security problems as it’s very difficult to track who is coming through your home – and who takes responsibility?
Many South African property buyers have commented that when they see a host of property for sale boards outside a property – it tends to create the impression that the seller is desperate or in need of a quick sale. This problem is often exacerbated by the fact that in an open mandate environment the Seller has little or no control over what price the property is being offered at – the Nett result is often a lower selling price than what should have been achieved on the property.
In summary, granting a Sole Mandate or Sole Agency Means:
- More money: Statistics prove you get more money by employing a Sole agent and granting a Sole Mandate.
- More effort: Exclusive Sole agents granted a Sole Mandate concentrate and focus their efforts on the property and, understandably, have a much stronger allegiance and responsibility to the seller who employs them exclusively.
- More energy: An estate agent who has been afforded a Sole Mandate will put more energy into the marketing of a home where they know the responsibility of getting the home sold lies with them.
- More time: Exclusive Sole agents spend more time exclusively working for you and their time is concentrated on your requirements.
- Sole Mandates avoids duplication of buyers and thus eliminates the very real threat of potential double commission claims (paying two estate agencies or agents for the same sale).
- Sole Agency affords the seller both privacy and security – an Agent granted a sole mandate works by appointment and according to your needs and schedule where possible.
- Buyer vetting. When you do receive an Offer – a Sole Agent will have had the time to double check the prospective buyer in terms of qualification, financial ability etc – as opposed to the risk in an open environment when an agent could rush to the table with an offer which may not have been vetted.
- With a Sole Mandate there is no “hawking” or “bazaaring” of your property for sale. Too many appointed estate agents can result in a cheapening of the house as there is no control over what price your home is offered to a prospective buyer at.
- No bidding the price down - when a buyer is offered a property by more than one estate agent they will test each agent to see who can get the house for them at a cheaper price.
- A Sole Mandate means 1 "For Sale" board only. Avoid looking desperate to prospective property buyers (and keep your pavement neater at the same time)
- The responsibility and commitment lies at all times with your appointed sole agent to sell your home; to get the best price and with employing your own exclusive agent you'll have the fewest hassles possible.
- One agent - your sole agent - the same way people consult one doctor or one attorney acting in your best interests at all times.
- Advertising - your Sole agent and agency can afford to spend money advertising and marketing your home in the manner is needs - giving you the best exposure possible.
- After sales service. A Sole Mandate means your estate agent is committed to you as a client – before during and after the successful sale of your property.
If you are considering selling your property or granting a sole mandate and would like to discuss your options as well as the best manner to market your home - give one of our local Chas Everitt operations a call today.
Author: Chas Everitt