Choosing a Sole Mandate: What You Need to Know
Opting for a Sole Mandate means placing exclusive selling rights with a single estate agent or agency for a specified period. This choice comes with significant advantages but requires a clear understanding of its terms and benefits.
What is Required for a Sole Mandate?
The Estate Agency Affairs Board Code of Conduct outlines essential requirements for a Sole Mandate to ensure seller protection. Unlike verbal open mandates, a Sole Mandate must:
- Be in written form and signed by the seller.
- Have a clear expiry date recorded.
- Be explained thoroughly by the agent, including implications like legal consequences if the seller attempts an independent sale or through another agent during the mandate period.
- Provide the seller with a copy of the mandate, ensuring transparency and seller awareness of the agreement’s terms.
Why Consider a Sole Mandate? The Key Benefits
Optimal Sale Price: Sole agents often achieve better sale prices, dedicating focused effort to attract competitive offers.
Enhanced Marketing Commitment: The exclusivity of a Sole Mandate motivates the agent to invest in high-quality marketing, leveraging resources that may otherwise be spread thin with multiple listings.
Reduced Risk of Double Commission Claims: A Sole Mandate avoids conflicts over commission, as only one agent handles the sale.
Privacy and Security: Limited agent access to your property offers a more private selling process, reducing unnecessary showings and security concerns.
Maintained Property Value: Multiple agents can create an impression of oversupply, which a Sole Mandate avoids, helping retain your property’s value in the eyes of buyers.
Single Point of Contact: Simplifies communication, as you deal directly with one agent and only one "For Sale" sign, creating a unified approach.
Leveraged Network: A Sole Mandate agent can leverage their team and buyer contacts to quickly find qualified buyers, optimizing the sale timeline.
Risks of Not Choosing a Sole Mandate
Without a Sole Mandate, you might face challenges like:
Reduced Marketing Focus: Agents may not invest heavily in marketing without exclusivity.
Increased Security Risks: Multiple agents increase the exposure of your property.
Privacy Disruptions: Multiple showings and different agents can disrupt your privacy.
Perception of Desperation: Numerous "For Sale" signs can make the property appear overly available, reducing buyer interest.
Confusing Price Negotiations: Different agents might lead to varied buyer offers, impacting price consistency.
Buyer Duplication: Multiple agents might introduce the same buyer, creating confusion.
Commission Disputes: Double commission claims could arise, leading to possible conflicts and legal fees.
Additional Benefits for Committed Sellers
A Sole Mandate typically lasts 3 to 6 months, allowing the agent to fully focus on achieving the best price without competing agents undermining efforts. While other agents within the agency can contribute, the focus remains on your property’s value and protecting the sale price.
With a Sole Mandate, you benefit from a focused, tailored marketing plan, and as your dedicated estate agent, I commit to ensuring maximum exposure to reach the ideal buyer. If the right buyer is in the market, my strategy will find them.