Advisory Services - Why a Sole Mandate?

Almost every Estate Agency, when commissioned to sell a property, will ask the seller for a Sole Agency or a Sole Mandate, that is, the exclusive right for a set period of time to market that property. Indeed, the overwhelming majority of South African residential properties are sold under sole agency agreements. But there are still sellers who balk at the idea of using one estate agency only. They believe they will do better if they get several firms working on the sale at the same time.

This is a fallacy!! Let me explain whyÖ if the right to sell a property is not an exclusive right, why should any agent spend (fairly substantial) money on print and other advertising, when someone else could ultimately nip in to clinch the deal and earn the Comission?

Unfortunately, owners often choose an open mandate when marketing their homes, believing that the more agents they have working on their property, the sooner they will achieve a good price for their house. In fact the reverse is often true, as no agent likes to spend time and money on a property they might not sell.

Under a Sole Mandate, both the agent and the agency are contractually bound to do their very best to market your home within the period of time laid out in the Sole Mandate.

Why a Sole Mandate?

• One agency is responsible.
• A Sole Agent will often obtain a higher price when they know they have time to negotiate with the buyer, without worrying that another agent might "get in first".
• More than one agent will often result in a lower price because buyers always want the most house for the least money and they select the agent they feel will get them the house for the lowest price.
• A Sole Mandate secures you a better marketing plan, a concentrated effort, and wider coverage and prevents any claims for double commission when the same buyer is brought through your home twice.
• All buyers shop around, so your Sole Agent, generally speaking, will have the same buyers as all the agents in town.
• Most Importantly: Your security and privacy are protected, as only your Sole Agent will contact you and bring buyers to your home.