In a buyer’s market, sellers will need to utilize any advantage they can find so that their home stands out among the crowd. One such advantage is signing a sole mandate to ensure that their property gets the maximum attention it deserves.
According to Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, many sellers falsely believe that if they let multiple agencies market their home, they will increase their reach to potential buyers which will enable them to sell quicker. The truth is that it is often far more effective to sign a sole mandate and allow one agent the space to secure the best sale.
“A sole mandate is an exclusive contract that stipulates an allotted timeframe during which a seller may not appoint another agent to market his or her property. This ensures that the agent will put maximum effort into fulfilling the goals that have been set within the contract. If an agent is working on an open mandate, however, they may be less inclined to spend as much time marketing the property, which will reduce your home’s chances of selling. This is worsened during a buyer’s market when agents have even more listings vying for their attention than usual, which means that your home may get even less of their time unless you have signed a sole mandate,” Goslett explains.
In an open mandate, there will be multiple agents, from a variety of agencies, who will be marketing and trying to sell your property. “This opens the potential for confusion as to which agent was the effective cause of the successful sale which increases the chance of a possible double commission claim,” Goslett cautions.
Logistically, a sole mandate is also a safer option while the threat of COVID-19 still exists because you will only have to liaise and deal with one agent, not several. “This simplifies the process, with far less time spent coordinating your schedule with the various agents and their buyers. It is also better from a safety perspective, as only one agent will have access to your property,” says Goslett.
While some might be inclined to think that signing a sole mandate is restricting, it is an opportunity to make the process of selling simpler and is the best way to motivate an agent to give the home their undivided attention. “Especially within these challenging market conditions, signing a sole mandate with an experienced real estate practitioner will provide sellers with the best chance of securing a timeous sale for as close to full value as possible,” Goslett concludes.