Why you should sign a sole and exclusive mandate
Category Selling
With interest rates at an almost 50-year low, it really is a buyer's market. As a seller, you need every advantage to help your property stand out from the pack. You may be tempted to turn to multiple agencies to help you market your property. However, signing a sole and exclusive mandate is by far the better choice. By putting your trust in one agent, you can guarantee the success of your sale.
What is a sole and exclusive mandate?
With a sole and exclusive mandate, you give your estate agent the sole or exclusive right to market your property on your behalf. It takes the stress out of dealing with multiple agents or selling the property by yourself. The agreement is entered into for an agreed-upon period after which you choose to enter into a new agreement with an agency of your choice.
With this type of mandate, the agent's commission is agreed upon at the start of the agreement and therefore there will be no surprises on the date of sale. Your appointed agent will also manage other agencies on your behalf should they have an interested pre-qualified buyer.
Benefits of a sole and exclusive mandate
A sole and exclusive mandate with a reputable agency unlocks a number of key benefits for you as the seller.
Deal with a single point of contact: Instead of opening your property to multiple agents, you will place your trust in a single professional agency. This reduces security and COVID-19 risks, potential damage to your property, and is, overall, much less of a hassle. Access to buyers to view your property is granted to qualified buyers only (not time wasters or criminally minded people) and the access is controlled and structured, resulting in a relationship of trust and accountability between you and the agent.
Maximum hit rate: A common misconception amongst sellers is that employing more agents creates more buyers for your property. The truth is that at any one time there are a set number of buyers looking to buy a property in your price range and in your area, so employing more agents does not increase the number of buyers. What you should rather do is focus on ensuring that the agency you choose is visible enough to attract this set number of buyers to your property and once introduced, to have the confidence that the agency you have chosen is professional enough to "close" a deal and get your property sold.
Get the best price: You will find your chosen agent creates competition amongst prospective buyers to get you the best possible price. After all, their commission depends on negotiating a great outcome for your property. Open mandates create competition between agents and therefore you can expect to receive lower and lower offers as the agents try to win over buyers.
No multiple commission claims: As there is a set number of buyers at any one time for your particular price range in your area, it is not uncommon that different agents will introduce the same buyer to your property, and this may result in different claims for payment of commission against you. This is eliminated by the appointment of one agency to market and sell your home.
Enjoy top-notch marketing: With a sole and exclusive mandate, your agent is solely responsible for the sale of your property. They are thus incentivised to devote their time and resources to create a killer campaign for your home. They should pull out all the stops on print and digital platforms like their website, property portals, and social media platforms.
Avoid over-exposing your property: Having multiple agents can make you look desperate to sell or encourage the idea your property is a tough one to sell. It can also cause buyer confusion as to which agency to contact first. Instead, having one agent can inspire exclusivity and create an easy path for an interested buyer.
Be under no obligation to accept an offer: Open mandates create competition amongst agents instead of buyers. In this case, an agent with a buyer might put pressure on you to accept a lower-than-expected offer - or lose the sale. A dedicated agent will instead try to get the best price within their allocated time frame.
Estate agent accountability: A Century 21 Exclusive Mandate is a written, signed and binding agreement between you and Century 21. As such, the Century 21 Estate Agent's conduct and service delivery to you becomes an actual contractual obligation on them to perform as communicated in order to get your home sold on your acceptable terms and conditions. An exclusive mandate gives you the agent's highest level of commitment which can only benefit you as the seller. Without this written agreement, you cannot enforce the same level of accountability.
Choosing an agent for a sole and exclusive mandate
Perhaps the biggest concern you might have about signing a sole and exclusive mandate is putting all your eggs in one basket. Picking the wrong agent for the job can be a costly mistake. It's important to keep these questions in mind when selecting your property professional. Interview various agents in your area in order for them to prove and show to you their knowledge and expertise on the following:
- Is the agent an area expert or do they work in all areas around town? With an intimate knowledge of the local and area specific property market, he/she will be in a better position to sell your home.
- Does the agent have a thorough knowledge of the selling process? Be sure to verify the agent's credentials. An agent who has invested in themselves with ongoing training will also be a good fit for your goals. Let your agent provide you with their completed training certificates.
- Does the agent have a good history in your area? You should request references or check reviews on social media or Google Reviews.
- Is the property valuation supported by careful research? You don't want to have your property overvalued or undervalued, so let the agent show to you how they get to the value of your property.
- Has the agent run successful seller campaigns before? Is their marketing driven by data and previous experience?
- Does the agency have a global referral system which can expose your property beyond borders?
Opting for a sole and exclusive mandate is a positive move. However, it has to be done with an agent with your best interests at heart. Be sure to go through these questions with a potential agent so you can ensure your home is in the right hands.
Sole and exclusive mandate contract
The agent you choose will present you with a sole and exclusive mandate contract. This will be done in writing and include the expiry date or duration of the mandate. It will also detail your role and the agent's responsibilities and duties. Your agent should take time to explain the meaning and consequences of the mandate. When you are happy with the contract, you will sign the document. Your agent will provide you with a copy of the mandate upon conclusion.
At the end of the contract, you can still opt to extend the mandate if your agent does not sell your property within the mandated time frame. This ensures you enjoy all the perks provided by the sole and exclusive mandate.
Partner with Century 21 Rustenburg
Century 21 Rustenburg understands that selling your home is one of the biggest decisions you will make in life. In our hands, a sole and exclusive mandate is a win-win situation. Trust our excellent track record and reputation in business with your property goals. Our team is just a call, email, or WhatsApp message away.
Author: Century 21 South Africa
