Why Should I Sign A Sole Mandate?
Many homeowners feel that if they let multiple agencies market their home, they will increase their reach to potential buyers which will enable them to sell their home quicker. The truth is that it is often far more effective to sign a sole mandate and allow one agent the space to secure the best sale.
In real estate, we know that too many cooks spoil the broth. If you’re a first-time seller, the terms ‘sole mandate’ and ‘open mandate’ have most likely come up in the early stages of the home selling journey and may have caused some uncertainty. For those who are struggling to decide what’s best for them, below are the differences between sole versus open mandates:
THE DIFFERENCE BETWEEN SOLE AND OPEN MANDATES:
What is a sole mandate?
A sole mandate is an exclusive contract that stipulates an allotted timeframe during which you may not appoint another agent to market your property. “You can appoint another agent only once the sole mandate has elapsed.
What is an open mandate?
If you opt for an open mandate, you’re taking exclusivity out of the deal completely. This means that there will be multiple agents, from a variety of agencies, who will be marketing and trying to sell your property. “Although this may sound like the option that will better your chances of finding a buyer, it can bring about complications and increase the chance of a possible double commission claim. An open mandate allows for a wider net to be cast, however, doing so also opens the potential for confusion as to which agent was the effective cause of the successful sale
What are the benefits of a sole mandate and why pick a sole mandate at all?
The first step in choosing an agency is to request a property valuation.
Any agency worth their salt will give you a comprehensive valuation based on current market rates, an analysis of pricing trends in your neighbourhood that is backed by research and experience.
If you opt for an open mandate, you’re taking exclusivity out of the deal completely. This means that there will be multiple agents, from a variety of agencies, who will be marketing and trying to sell your property. “Although this may sound like the option that will better your chances of finding a buyer, it can bring about complications and increase the chance of a possible double commission claim.
Logistically, a sole mandate will also take up less of your time because you will only have to liaise and deal with one agent, not several. This simplifies the process, with far less time spent coordinating your schedule with the various agents and their buyers. It is also better from a safety perspective, as only one agent will have access to your property.
“While you might be inclined to think that signing a sole mandate is restricting, it is an opportunity to make the process of selling your home simpler.
Simply put, it’s quality over quantity.
It may seem intuitive logic that more agents marketing your properties means more opportunities to sell it. However that is not the case.
Advantages of an sole mandate include:
You’ll get a better price
When multiple agencies are marketing a property, each wants to beat the others to the punch. This means they are focusing on selling the property more quickly, rather than for a better price.
With just one agency, their priority is to get the best price, and they’ll have time to do a comprehensive valuation of the property that enables you to set a price in line with the property market, with less risk of over or under valuing it.
You’ll only pay one commission
Playing agencies against each other in the hope of getting them to lower their commission rates will backfire. You get what you pay for, and if you agree to pay one agency the commission at their required rates, they will put more time and effort into marketing and selling your property for the right price.
You’ll get a better quality marketing campaign
It’s said that too many cooks spoil the broth. Well, this applies to estate agents as well. If you’ve got multiple agencies marketing the same property, there’s no coordination, and it will result in a confused and ineffective marketing campaign.
Put one agency in charge, and they’ll run a marketing campaign with all the correct gears in place.
This means that you will be able to set a market-related asking price, rather than over- or under-valuing your property.
Request a free property valuation here.
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