The advantages of an exclusive mandate

When it comes to selling what is probably your largest investment, your choice of real estate agent to help sell your property matters more than you think and it’s not only a matter of appointing the best agent, it’s also very important to find one who is the right fit for you.

With the right agent in your corner, not only are you likely to sell your home faster and at the best possible sale price, they will also guide you along the way and make the selling process much less stressful.

In fact, it can be said that a good agent with experience who understands the market is worth their weight in gold and it’s therefore understandable that a seller might believe that by appointing more than one agency, it will ensure a faster sale for a higher price.

However, this is seldom the case and, more often than not, quite the opposite is true.

The benefits of an exclusive mandate include the following:

• Sole mandates create a real working commitment between seller and agent to actively work together to achieve the best and fastest sale, with the least disruption and stress.
• This not only affords the seller peace of mind but also allows him/her better control over how the property is being marketed.
• The Agent will always work in the best interest of the Seller and should there be interest from more than one buyer, both the seller and agent will benefit from the highest price being achieved.

Under these circumstances there is no need for the agent to put the seller under any pressure whereas in an open mandate scenario, two agents might have two competing offers from different buyers and the agents may be inclined to work more in the interest of their buyer with the seller pressured to accept one offer in favour of another. The highest price may not always be achieved.

• Under a sole mandate, the seller is not susceptible to double commission claims, as one agent/agency takes responsibility to represent the seller and no other agent can claim for commission.
• The Seller also won’t have the hassle of juggling appointments with different agents or having unannounced visits at inconvenient times.
• The agent is more likely to be eager to allocate more of his/her advertising budget on your home.
• From a security point of view, having a sole agent also means one person has access to the property. The Agent also has control of the list of Buyers who have viewed the property.
• Another point to consider is that having multiple agents can make a Seller look desperate or make it look like the property is a difficult one to sell. Relying on a sole agent makes the property look that much more exclusive.

With two or more agents clamouring to bring you buyers, as would be the case on an open mandate, there is far less control and focus, and it’s highly unlikely that the most optimal result will be achieved.

At the end of the day, the value that a seller achieves on a property sale is directly influenced by the level of real estate service received, and this service is always maximised through a sole mandate.