Should I Sign a Sole Mandate?
Are there benefits to signing a Sole Mandate with a property agency?
A Sole, or as we at PropertyFox refer to it, Exclusive Mandate is an instruction to sell a property through one agency only, unlike with an Open Mandate where you are able to market your property with multiple agencies.
To many sellers the idea of an open mandate might provide a perception of having more control over the sale of their property, or that it would sell quicker, but this decision can quickly complicate the matter, and as far as speed is concerned, sometimes hamper the process instead of helping. Although the concept of an open mandate might sound ideal we would like to explain why an exclusive mandate is far more beneficial.
What is a Sole Mandate?
The purpose of a sole mandate is to give one agent an exclusive contract to secure a sale. You may have heard the term before, but may not fully comprehend the whole concept of a sole mandate as it is one of the most misunderstood concepts in the process of selling your property.
So how exactly does the process work, what does it involve and are there any hidden pitfalls to a Sole Mandate?
Advantages of a Sole Mandate
- Accountability – Selling through one agent keeps them accountable to you for the sale of the property, and they cannot hide behind performance excuses.
- Price Control – Selling your home through a sole mandate guarantees you a better price for your home. Having too many realtors work on selling your property could actually cheapen the price of your home as there will be competition as to who will sell your home the quickest.
- More Privacy – Allowing only one property realtor to market your home affords the seller more privacy and security. You will know exactly who has your details, and how they are sharing your information, and to whom.
- Increased Marketing – Although this feels counterintuitive, as the perception is that more agents would surely market more, the inverse is true. With more agencies, agents feel less of a need to market the home, as they feel someone else would do more of the groundwork. Through an exclusive mandate, more money and energy is put into your property’s marketing.
- No Commission Squabbles – Sole Mandates help to avoid double commission claims and all round drama. Some agencies, like ourselves, also welcome other agents to bring buyers to the home. We then make our own arrangements with the other firms. At the end of the day, we are here to help your property sell, and that is our primary focus.
- Neatness – In case you are a neat-freak, there will only be one ‘for sale’ sign board outside your property.
When choosing between the Exclusive or Open Mandate, over and above all else, the mandate is in place to protect all parties through a solid legal contract.
When reading through your instruction, the most important points to look out for are the duration, price and commission payable together with the terms and conditions of the mandate.
If you want to sell your home at a quicker pace and at the best rate, then a sole mandate is the way to go.