SHOULD A SOLE MANDATE BE CONSIDERED WHEN OFFERED BY AN ESTATE AGENT?
REQUIREMENTS FOR A SOLE MANDATE
ADVANTAGES OF A SOLE MANDATE
- The seller should get a better price by employing a sole real estate agent
- The agent puts more money and energy into marketing your property
- Avoids double commission claims
- Affords the seller more privacy and security
- Too many agents can cheapen the property
- Only one for sale sign boards outside your property, thus one point of contact
- The sole mandate agent will make full use of his or her team and buyer contact list to effect a quicksale at the best price
FURTHER BENEFITS TO A SELLER COMMITTED TO A SOLE MANDATE
A sole mandate which is usually set for an average of 3 months, but rarely longer than 6 months, excludes competing agencies that act as free riders in the market. A sole mandate, therefore, serves as incentive for the reputable estate agency to focus all its energy and resources on selling a property.
There is considerable merit in considering the granting of a sole mandate to a reputable estate agent as the agent can still make use of other agents within the agency and affiliate agents, as long as the deal is struck in a manner where it does not influence the seller’s price in a negative manner and commission sharing is not an issue.