Property Sole Mandate Sale

What is a property sole mandate sale

By HouseFurb, Sep 18, 2018

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When you sell your property using an estate agency, the first thing they will ask is if they can do a sole mandate. A sole mandate simply means that the rights to sell the property are given to only that specific estate agency and no other agency can sell the property. While on the other hand, an Open Mandate means that multiple agencies can be able to sell the property should the owner wish to do so.

It's always better to go for a sole mandate over an open mandate because of the below reasons

A sole mandate protects the seller best because it is a contractual agreement between agent and seller. It ensures the agency’s commitment and guarantees a requisite level of service. The seller benefits from greater advertising exposure, more show days, increased marketing spend and a listing on the agency’s national and international database

With an open mandate, a property quickly becomes over-exposed to many buyers. A sole mandate ensures exclusivity for the seller: the property is linked to one brand and sends a strong signal about quality to the marketplace. Agents take sole mandates very seriously, and will report back to their sellers regularly.

Sellers are often told that the more agencies they involve, the better the chances of them selling a property. This is not true at all, agencies do not concentrate on marketing open stock; they focus strongly on their sole mandates

If a seller signs a sole mandate, the agent commits to a vigorous marketing plan to get the house sold. If a seller calls in all local agencies, they will simply list the property, but can’t offer the full spectrum of marketing benefits. The home can also be perceived in a negative light by buyers, because it will be seen as open to all, and perhaps even a forced or “distressed” sale.

Industry statistics show that homes on sole mandate (which typically run for three to six months) achieve higher prices. Buyers like the notion of exclusivity; there’s a perception of quality. In an open market, agents simply run their buyers through the stock and try to close a deal as fast as possible. Open mandates can also render a seller vulnerable to double commission claims. If a property is priced correctly and managed properly under a sole mandate, it should sell. Furthermore, all parties are protected by solid legal contracts

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