Choose the right mandate to sell faster, better and at the price you want
Category Advice
When selling a home, the process may seem daunting at first as there are several processes and requirements in place to facilitate a sale. However, when you get started, it is vital to implement two key steps that make the process easier and assists in ensuring a successful and timeous sale. These include: choosing the correct real estate agent and deciding on a mandate that fits your needs. These steps are mutually beneficial as the right estate agent will provide an effective marketing plan and expertise to sell your property regardless of its mandate. However, not all mandates are equal, and it is therefore important to choose a mandate best suited to you.
The different types of mandates
Open Mandate
An open mandate is the most flexible option as it allows a homeseller the freedom to market their home with different estate agencies without the need for a fixed period contract. Under this arrangement, only the agent who secures a buyer will receive a commision.
Multi-listing Mandate
A multi-listing mandate, also known as a letter of authorisation, is an arrangement between a listing agent that you've signed up with and other associated agencies. Both these bodies have the authority to market and sell your property. After the sale, commission earned is shared equally between the listing agent and the associated agency that found a buyer.
Sole Mandate
A sole mandate is exclusive, meaning that a single estate agent, from a designated agency, has the authority to market your property. Sellers are required to sign a fixed contract which is typically 3 months.
Best option to facilitate a sale
Of these three mandates to choose from, sole mandates are most recommended by real estate professionals as it typically sells your home in the quickest time and highest price.
Benefits Include:
Exclusivity
Sole mandates’ “exclusivity” is its most attractive and valuable feature. Unlike an open mandate and a multi-listing mandate, which markets your home through multiple agents, sole mandates instead, market your home through one trusted agent. Although, this may initially seem like a disadvantage as your property will be listed with less agencies, this is in fact, a great benefit. By reducing your exposure, the public perception of your home is viewed as premium or higher quality due to its link to only one brand. This perception is an instrumental tool in selling your property fast, to the right buyer and at the right price.
Trust
Additionally, sole mandates encourage a heightened level of trust among the seller and agent in a manner not possible by the other mandates. This is because, a seller entrusts the entire sales process to a chosen agent, and this ensures full commitment and a requisite level of service as an agent understands that it is their sole responsibility to sell a home without competition from other agents.
Price
Getting your expected selling price is also a key advantage in a sole mandate listing. Of course, market conditions play a big role in this, however, when compared to open and multi-listing mandates, sole mandates are the best option. For example; in open and multi-listing mandates, competition exists throughout the process with various agents trying to find a buyer for one property. However, many unreliable agents will not place a high priority on selling these mandates as the possibility of their efforts being futile is relatively high. This may result in your property staying on the market for a very long time, or, if an agent does find a buyer, they may influence you to accept a lower offer in order to compete against the other agents mandated to your property. Fortunately, sole mandates are protected from this scenario as this competition does not exist, instead, the chosen agent can dedicate all their resources to sell your property, without the fear of losing the sale and commission to another agent. And when a potential buyer is found, these reasons are likely to get you the price you want.
When the time comes to sell your home, an agent is likely to offer you a sole mandate as this is proven to be the most effective selling option. It encourages exclusivity, trust between agent and seller and assists in getting the price you want. While De Lucia Group recommends sole mandates, it is up to you decide which option is the best suited. We encourage you to further research the various options until you are confident in your choice. Alternatively, you can contact our helpful agents to find out more.
Author: De Lucia Group
