Exclusive Mandates: Empowering Sellers in the real estate market

When it comes to selling a property, homeowners have several options regarding the type of mandate they can agree to with a real estate agent and exclusive mandates, in particular, have gained popularity due to the unique advantages they provide to sellers.

However, when it comes to making this important decision, it’s essential for homeowners to understand the differences between shared, sole and exclusive mandates and what each offers to ensure their choice best align with their selling goals.

Exclusive Mandates:

An exclusive mandate is a contractual agreement between a seller and a real estate agent or agency under which the seller grants the agent or agency the exclusive right to market and sell the property for a specified period. During this time, the seller agrees not to engage other agents or agencies to market the property.

The Strength of Exclusive Mandates:

• Focused Marketing Efforts: With an exclusive mandate, the chosen agent can dedicate their full attention and resources to marketing and selling the property. This ensures a concentrated and consistent marketing approach, reaching the right target audience effectively.
  
  
• Enhanced Exposure: By committing to an exclusive mandate, the agent can invest more time, effort, and financial resources into promoting the property. They can leverage their network, use professional marketing tools, and implement comprehensive marketing strategies, ultimately maximising exposure for the seller's property.
  
  
• Expertise and Negotiation Skills: With exclusive mandates, agents can dedicate their expertise and negotiation skills to a single property. This specialised focus allows them to understand the property's unique selling points, effectively handle inquiries, conduct viewings, and negotiate the best possible terms on behalf of the seller.
  
  
• Streamlined Communication: Having a single point of contact streamlines communication between the seller and agent. This improves efficiency and ensures that all pertinent information is relayed accurately and promptly, fostering a stronger working relationship.

Sole Mandates:

A sole mandate is similar to an exclusive mandate in that it grants one agent or agency the exclusive right to sell the property, however, under a sole mandate, the seller retains the right to market the property independently.

Sole Mandates: Control and Single Representation:

• Independence and Flexibility: Sellers who opt for a sole mandate can actively engage in marketing efforts themselves or through alternative channels while benefiting from the agent's expertise and guidance.
  
  
• Negotiating Fees: Sole mandates often allow room for negotiation on commission rates and terms, providing sellers with potential cost savings.
  
  
• Diluted Agent Focus: With a sole mandate, the agent's attention may be divided among several properties. This may affect the level of dedication and resources allocated to marketing and selling the property.

Shared Mandates:

In a shared mandate, sellers engage multiple agents or agencies to market and sell their property simultaneously.

Each agent or agency has the right to advertise and show the property to potential buyers, however, only the agent who successfully secures a buyer and facilitates the sale is entitled to a commission.

Shared Mandates: Collaboration and Wider Reach:

• Broader Network: Shared mandates can provide broader exposure for a property, as multiple agents bring their respective networks and marketing channels into play. This may attract more potential buyers and increase the chances of a successful sale.
  
  
• Competition Among Agents: With shared mandates, agents are motivated to outperform one another in securing a buyer. This can lead to a higher level of dedication and proactive marketing efforts.
  
  
• Coordination Challenges: Sellers must carefully manage communication among multiple agents and ensure consistent messaging and coordinated efforts. It's essential to establish clear lines of communication and avoid potential conflicts or confusion.

Ultimately, selecting the right mandate type is crucial for a successful and efficient property sale. Sellers should carefully evaluate their goals, the level of involvement they desire, and the market dynamics before choosing between the options.

However, most sellers and property professionals will agree that exclusive mandates offer distinct advantages to sellers, including focused marketing efforts, enhanced exposure, specialised negotiation skills, and streamlined communication.