Stick to your sole mandate and sell faster

There’s an old saying about how unwise it is to change horses in midstream, and it certainly applies when you are trying to sell your home and have already awarded a sole mandate to a top agent.

“Once you have decided to sell, it is only natural to want to find a buyer and ‘get across the river’ as fast as possible,” says Berry Everitt, CEO of the Chas Everitt International property group. “But one of the worst moves you can make to try to speed things up is to switch from that sole mandate to an open mandate, in the belief that that several agents working simultaneously will reach more potential buyers than one working alone.
“The fact is that more is definitely not merrier when it comes to home sales – and that making a change like this is actually likely to lengthen the time that your property will stay on the market rather than shorten it.”
For a start, he says, much of the marketing done by the original sole agent and the momentum gained from that will probably go to waste as the other agents each start from scratch to build up interest in the property.
“In addition, agents working on an open mandate seldom have the same level of dedication to marketing your property as an agent working on a sole mandate, because of the risk that the deal will be done by someone else and that any time and money that they have put in will go to waste.”
Writing in the latest Property Signposts newsletter, Everitt says sellers should also be aware that buyers who see many for-sale boards on a property will often “shop around” among those agents until they find the one that quotes the lowest price or agrees to present the lowest offer.
“Meanwhile a longer time on the market will also mean an increase in your holding costs, as well as a real risk of the property becoming overexposed and buyers losing interest altogether.
“And then to top it all, changing from a sole mandate to an open mandate increases the risk that you will be exposed to a ‘double commission’ claim that could severely affect the profitability of your sale. Such claims can easily arise when the eventual buyer of a property has viewed it with one agent and concluded the sale through another, but won’t happen if you award a sole mandate to a qualified, experienced agent and stick with it.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 May 2018
      The importance of correctly pricing a property for sale is more imperative than ever. This is according to Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, who says that despite this crucial selling fact being emphasised so often, in the current market, many sellers are still expecting unrealistic prices for their homes which is having a negative impact on the ultimate sale price.
    • 22 May 2018
      Extreme weather appears to be the new normal, evident by the volume of insurance-related disputes reaching the industry watchdog’s desk. To avoid a situation in which your insurer refuses to pay up, you should proactively ensure that your home is well-maintained and ready for whatever winter has in store.
    • 22 May 2018
      As the impact of technology on the real estate industry becomes more significant, it is clear that there is a need for an objective look at not only traditional real estate models but also online and other alternative low-commission real estate agencies, to examine what they offer and what their impact might be.
    • 22 May 2018
      According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, dealing with some sort of neighbour dispute is an unavoidable part of life unless, perhaps, you choose to live on a remote small holding for the rest of your life.
    • 22 May 2018
      Buyers feel that they are getting value for money in the Northcliff area without having to compromise on aesthetics and amenities
    • 21 May 2018
      Secure living is one of the growing property trends in South Africa and Nooitgedacht Estate in Stellenbosch certainly ticks the right boxes for buyers who want a secure, exclusive lifestyle in one of the Boland’s most sought-after estates, says Pam Golding Properties.
    • 21 May 2018
      With sectional titles growing in popularity, an increasing amount of homeowners simply do not have the garden space to install a tool shed in their backyard.
    • 18 May 2018
      Home improvements are a great way to add value to your property, but not all of us have bottomless pockets for a full-on renovation. Lucky for us, there are plenty of affordable DIYs that can spruce things up over a free weekend.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us