Sole Mandate – Yes or No ?
Ida du Plooy
Harcourts Dolphin Coast.
“A home you own is always so much more than bricks and mortar,” says Harcourts Africa CEO Richard Gray, “and this emotional attachment tends to grow stronger over time. However it can become a serious obstacle when the time comes to sell the property and to make the decision on awarding a sole or exclusive marketing mandate to only one agency.
Giving the exclusive responsibility of selling ones property to a single agent can be a difficult concept to wrap one’s head around, however equipped with the right information there are many benefits in choosing this option.
Will my house not sell faster as an open mandate?
In thinking that your property will sell faster on the open market with every agency in town, has in so many cases turned into a nightmare with no one taking responsibility or caring about you, the seller. In so many cases the initial excitement will see a rush of people walking through your home at all hours , but, as time goes by without any offers, your property fades away attracting less and less interest. Because no-one is responsible for the mandate to sell your property, you are left in the dark not knowing that your house is now “out of sight and out of mind”
Can a Sole Mandate guarantee the sale of my house?
In opting to use a sole mandate, the home-owner is entitled to reward commission to the specific agent, if the property is sold within the specified number of days declared within the mandate. “When entering into this legal contract between seller and estate agent, the seller needs to bear in mind that the mandate does not guarantee the sale of the property, it should rather be regarded as a commitment from the agent to perform at the highest standards of marketing and promoting your property”, Richard Gray.
A sole mandate offers exclusivity. It deliberately focuses a pool of people in one place and when people are focusing in one area it then creates competition. Your agent will be working for you and not use your property as a comparison to sell another. Being able to effectively market the property through the right channels is an essential marketing strategy and is a key benefit of mandates- to draw people in and create competition.
A good exercise to see the effects of a house on the open market will be to go to any property website (such as Property 24 or Private Property) and find a property listed by multitude agents. Compare the quality of each agents listing of the same house and read it carefully The results may leave you with a hair- raising view of what buyers are faced with. In many instances buyers will search out the lowest priced listing of your property and may even be of the opinion that you are desperate to sell the house, resulting in low offers from bargain hunters. Where you property is exclusively listed by a single and reputable agency, the serious buyers will take notice and make contact with the sole agent. Fear of loss and exclusivity will have buyers compete for your property, whereas many and different web-listings of your property will have agents competing against each other in getting your price lowered to attract the bargain hunter. A quick sale for them by driving down the price.
The fear of Double Commission:
Confusion can arise in a situation where an agent without the contracted mandate gets an offer on a property. It goes without saying that it is going against the Code of Conduct of the Estate Agents Affairs Board, when another agent knowingly sells a mandated home. In doing so, that agent will in most cases have to pay the commission over to the rightfully mandated agent. In the event that a seller knowingly accepts an offer from an outside agent, the seller can be liable in paying both agents commission. However, if the correct procedures are followed and the outside agent works with the mandated agent, a “finder’s fee” can be negotiated in which the agent bringing the sale will receive a percentage of the agreed upon commission.
Who to choose?
Once the difficult decision of choosing to work within the parameters of a sole mandate has been decided, an even harder decision presents itself in whom to choose to represent your property. It is the responsibility of the seller to make an informed choice with clear knowledge of agency as well as the estate agent’s past sale record.
“It is absolutely necessary for the relevant questions to be addressed to agents who are being considered for the task. Questions pertaining to their track record of past sales, the names of the last three successful sellers they worked with, the percentage of mandates that they are selling and on average, how long it takes for them to sell a property. It should be an absolute requirement that an agent provides their client with a presentation addressing the questions mentioned,” Gray states.
Armed with the necessary knowledge of the benefits a sole mandate offers, it is at the discretion of home-sellers out there if they choose whether or not to decide on a sole mandate.
At Harcourts Dolphin Coast we encourage clients to work within a sole mandate. This guarantees a tailor-made approach to the sale of your property, which in return equates to the swift offer to purchase from potential home-buyers. We take our commitment to our mandates so seriously, that we offer all our exclusive mandated sellers our written Harcourts Promise to:
• A Detailed marketing plan
• Post-inspection Feedback
• Written progress reports
• Marketing review meetings, and
• All offers presented in writing.
Our commitment to you is to prove that a sole mandate is the best option for a smooth and pleasant selling experience.
Why don’t you call on the property professionals of Harcourts Dolphin Coast today, to re-asses your house that has been on the market for such a long period?
Office: 032 946 2331
E –mail: firstname.lastname@example.org
We have a vacancy for a dedicated full status agent to join our dynamic and winning team. Contact us today.