In the current buyer’s market, sellers need to utilize their advantages for their homes to stand out in the crowd. One such advantage would be signing a sole mandate to ensure that their property gets the maximum attention.
Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett says that many sellers falsely believe that if they let multiple agencies market their home, they will increase the reach to potential buyers for a quicker sale. The truth is that a sole mandate is often more effective, allowing one agent the space to secure the best sale.
“A sole mandate is an exclusive contract that stipulates an allotted time frame 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 the property. Goslett cautions that 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.
During Covid-19, a sole mandate is the safer option as only one agent will have access to the property.
While some home owners may be inclined to think that signing a sole mandate is restricting, it is an opportunity to make the process of selling simpler and it 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.