Giving A Mandate

Image title

YOU always remain in control of the process when selling YOUR property!

In terms of the mandate given to an agent to market and sell your property, there are mostly three options available to you, each with its pros and cons:

SOLE MANDATE: One agency is given the exclusive right to market and conclude a sale of the owner’s property within a specific period of time and is based on an instruction and agreement between the seller and the estate agency. The time period for a sole mandate depends on the area and the type and price of the property and the activity levels in the market at any given time.

DUAL MANDATE: Two or three agencies are given the right to market and conclude a sale of the owner’s property. The agency that sells receives the associated professional fee.

OPEN MANDATE: Many agencies are given the right to market and conclude a sale of the owner’s property. The agency that sells receives the associated professional fee.

In practice, sole and open mandates are the most common. Following is a quick summary of the benefits of a sole mandate compared to an open mandate:


SOLE MANDATE
  • Personalised and focused marketing and advertising plan, including show days, advertisements, etc. supported by a generous marketing budget

  • Interaction with a single agent who is determined to fully understand your needs

  • Greater chance to realise your selling price due to BUYERS competing on the property

  • Consistency of price ensured                 

  • Agent accountable to you for results due to contractual agreement

  • Very small chance of any commission dispute

  • No over-exposure of the property as advertising and show days are controlled

  • Peace of mind

OPEN MANDATE
  • General marketing and exposure of property supported by a shared marketing budget

  • You have to repeat yourself in explaining your needs to many agents

  • Price often compromised due to AGENTS competing on the property

  • Price confusion in the market due to buyers seeking out the agent that offers the lowest price

  • Less accountability

  • Risk of commission disputes and seller becoming liable to pay double commission

  • Risk of over-exposure of property due to many agents advertising the property

  • Security risk