The Importance of a Sole Mandate
Category Property Advice
A sole / exclusive mandate is when the seller hands over the exclusive right to handle the marketing and selling of their property to a single agency, as opposed to an open mandate, which would allow any agency the opportunity.
There are some misconceptions about a sole mandate, with many sellers believing by going with one agent, they are somehow restricting their options in terms of, among other things, marketing, the speed of the sale, securing an acceptable price and overall control.
The reality, however, is often very different and by going with a single agent, the seller is actually likely to benefit in a number of ways. It is worth noting, however, that before considering the benefits of a sole mandate, you should be absolutely certain that the agent you are considering is the right person for the job. You will be entering into a partnership with the agent and you need to trust them wholeheartedly says The Agency Property Group's Kyle Leigh.
''At The Agency we aim to become your trusted advisor for life. For us it's not about the short-term gain, but about understanding our client's needs, creating an environment of mutual trust and respect, and building long-lasting relationships. We want to be a part of their journey and trust that our experience and expertise will ensure a smooth ride during the buying and selling of their properties.''
Once you have signed off on a sole mandate with the agency of your choice, you will find benefits in many ways:
Price
Having a sole agent working on the sale of your property will often lead to you getting closer to your original asking price. With too many agents attached, they will often look to undercut one another in order to make the sale. In essence, it's more beneficial to have buyers competing to purchase your house at market-value, than having agents competing to sell your property at any cost.
Marketing
While it may seem that more agents leads to more marketing, the opposite is often true, with agents feeling less inclined to put budget behind the marketing of a house that they believe other agents will be doing already. Through a sole mandate, the agent will put more energy and budget into marketing your property. From the buyer's point of view, having a property listed on a number of sites, with different prices attached, and a completely different marketing campaign does little to inspire confidence in the process or provide peace of mind.
''Having a single point of contact is not only beneficial from both a logistical and security perspective (think having multiple keys out there with multiple agents) but partnering with the right agent with the right strategy will attract the serious buyers," says The Agency's Simony Santos.
"On top of this, we have built strong relationships within the industry, working very closely with other agents and agencies in the area and are more than happy to invite any of their potential buyers into any of our listings.''
Choosing an agent
Choosing the agent to work with is hugely important and sellers should be cautious of agents that over-value their property in order to get a mandate. Agents should be able to provide you with comparative marketing and prices of the area and motivate how they came to evaluate the cost of your property. You don't want your house going for less than its worth, but equally so you do not want your property sitting, because it's been marketed for too high a price. A professional agent should understand current market conditions as well as have personalized knowledge of your property and area.
A Partnership
Ultimately, a sole mandate will work as a partnership between the seller and the agent. From the marketing plan and decision to pricing, right through to the sale of the property, it is in the best interest of both to work together in ensuring the sale goes through in the allotted period of time and collects the asked for sale price or as close to it as possible.
''It's important to choose an agent you trust," says Lynn Pinn of The Agency.
"Choose an agent whose primary focus is looking after you and selling your home at the best possible price within the shortest space of time. 'Commit to us and we will commit to you' has always been my motto and I wake up every morning with our sellers in mind and the singular aim of selling their properties.''
Contact us if you would like a free and confidential valuation or any property advice whatsoever.
Author: The Agency Property Group
