How a sole mandate can make your house sell faster
Category Seller Advice
It's a big question: Should you sign a sole mandate or open mandate when you want to sell your home? The difference between the two is simple, but choosing the wrong option can cause a lot of complications.
Open mandates have their place, but sole mandates often allow you to sell your home faster for the right price because you have a committed, accountable estate agent that can manage perceptions of your property with prospective purchasers as well as on online platforms.
It's an unfortunate truth but making too many realtors responsible for selling your property could leave you with a lot of admin and little value.
So, when is a sole mandate the right option for you, and at what point should you consider an open mandate? Here's what you need to know to sell your home faster for the right price:
What does "Sole Mandate" mean?
A technical definition of a sole mandate is "a contract that offers a single estate agent the right to market your property exclusively for a specified period of time," notes ESI Attorneys. "During this time, no other estate agent or agency will be allowed to market your property."
Simply put, with a sole mandate, you have one agent promoting and showing your home, says Roxane Gers, an estate agent for NS Property Solutions in Jeffreys Bay.
The alternative is known as an open mandate, writes ESI Attorneys. Here multiple agents and agencies market a property at the same time.
What are the benefits of a sole mandate
Both sole and open mandates have their advantages. It all depends on your goals and the property market conditions when you're selling your home.
1. Sell faster
When you give one estate agent the sole responsibility for the sale of your property, they naturally have a stronger incentive to make the deal happen. You can expect active commitment from your realtor, including regular, in-depth updates and a comprehensive marketing plan.
Agents who specialise in sole mandates often also have less work on their plate. They typically only work on a handful of properties at a time. That means they have more time to spend on marketing your property, drum up interest faster and react to potential buyers more quickly.
"You need an agent that will monitor your listing constantly and continually come up with strategies to generate interest," explains Roxane. "It's about accountability. When there's no single agent responsible for the sale of your home, then none of the many agents you appoint in an open mandate can be personally held responsible for getting things done fast and efficiently."
2. Get the price you want
One challenge with an open mandate is that the different estate agents you appoint to sell your house might promote your property at different prices, each basing their asking price on what they think your home is worth and how much commission they want from the sale.
Roxane says the problem with marketing a property under different asking prices is that buyers assume you'll be open to negotiating your home's price, making it less likely that you'll get the price you want. Worse still, buyers might get the impression that you're desperate to sell your house and lose interest.
A sole mandate might also reduce the risk of nasty surprises during the sale, notes Roxane. "The risk of paying a double commission is significantly minimised when using one agent because the inflow of buyers is controlled via one gateway."
3. Less admin for you
In Roxane's experience, clients often find it challenging to keep track of multiple agents that constantly phone to discuss certain points and multiple dates to show your house or facilitate viewings.
When you opt for a sole mandate, you'll receive updates and communication from a single person. There will also be only one trusted agent visiting your house with potential buyers instead of several.
When to consider an open mandate
Open mandates have their place in the sales process, especially when the property market is in a tight spot. Roxane recommends that you consider changing a sole mandate to an open mandate if your property hasn't received offers after a considerable time on the market.
But she warns to choose your estate agents wisely. "Make sure they are active in your area and involved in your community. You'll also want to make sure that they price your property competitively, show you a powerful property marketing plan and are backed by a reputable estate agency," she notes.
What our clients prefer
Many NS Property Solutions customers have seen the best results when choosing to sign a sole mandate agreement with one of our estate agents.
For example, a seller recently saw great results when she signed a sole mandate with Roxane Gers as her estate agent in Jeffreys Bay. "My property was on the market for years, and nothing happened until Roxane stepped in," Nola Monteith says. "Within a few weeks, I had the right offer."
The right estate agent and the correct mandate can make all the difference when it comes to selling your home quickly for the best deal possible.
Ready to sell your home? Book a free valuation and find out what we offer here.
Author: NS Property Solutions