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Choosing between sole and open mandates: What's best for selling your property

By Justina Hamupembe September 15, 2023 0

The question around the need for a sole mandate when putting a property on the market is an important one and worth understanding.

It's a property question to which the best answer seems counterintuitive.

Defining the Sole Mandate

A sole mandate, also known as an exclusive mandate, is a formal agreement in which the seller grants a single selected agency exclusive rights to market and sell their property. This agreement, which must be documented in writing, outlines the mandate's duration, the property's selling price, the agreed-upon commission structure, and any other terms related to the property's sale.

Reducing Complexity and Avoiding Duplication

The primary motivation behind signing a sole mandate with an agency is to eliminate the confusion caused by multiple agencies attempting to sell the same property. This situation can lead to messy disputes and potentially result in double commission claims, leaving both sellers and buyers frustrated and hindering the overall selling process.

Addressing Pricing Disputes

Multiple agents marketing the same property can often lead to disagreements over its pricing, potentially causing far-reaching consequences.

Benefits of a Sole Mandate

With a sole mandate, the risk of duplicate buyers is significantly reduced, and the property remains fresh in the market. Additionally, sellers experience less administrative hassle, as they deal with one dedicated and accountable agent responsible for the property's sale.

Ultimately, both the seller's and the agent's goal is to achieve a quick sale at the highest possible price, with a buyer who can meet the agreement's terms. Repeatedly, it has been demonstrated that a sole mandate streamlines this process by focusing the efforts of a single dedicated agent.

Quality Over Quantity

Choosing between a sole mandate and an open mandate also involves considering whether to prioritize quality or quantity. An open mandate allows multiple real estate agencies to market a property simultaneously, while a sole mandate entrusts the responsibility to a single agent, promoting focus and reducing complications. Despite the common misconception that more agents equate to more selling opportunities, it is often the quality of the agent that matters most.

Understanding Legal Aspects

Estate agents are obligated to explain the legal implications of a sole mandate to the seller and provide a copy of the agreement. Typically, sole mandates have a duration of 90 days, but their revocability can vary. Many agents utilize sole mandate forms that specify a certain irrevocable period.

Exploring Dual Mandates and Open Mandates

In some cases, sellers may encounter dual mandates, which involve signing a sole mandate with two or more agencies. This agreement stipulates that the agent who successfully sources the buyer will be entitled to the commission. An open mandate, on the other hand, lists a property with multiple real estate agents from various agencies, each marketing and attempting to sell the property. However, sellers choosing this route should be cautious, as disputes over commission allocation can arise.

Selecting the Right Agent

Selling a home can be a stressful process, and having multiple agents involved may add to the complexity. It is often more effective to opt for a sole mandate and entrust a single agent with securing the best sale.

Nevertheless, there are risks associated with relying on a single agent. It's crucial to avoid becoming contractually bound to an agent who is uncooperative or underperforming. When selecting an agent, prioritize qualities such as passion, honesty, knowledge, and a proven track record of successful sales in your area.

While cost considerations are important, the lowest commission should not be the sole determinant. Look for a well-presented professional who can substantiate their recommendations with both personal anecdotes and hard evidence, clearly outlining the services they will provide in return for the commission.

Lastly, consider the personality fit, as you will be working closely with your chosen agent for several weeks or even months. A good agent will listen to your needs, respect your views, and ensure that you feel heard throughout the process. Finding the right person can make all the difference in a successful property sale.

 *For enquiries Text, Call or email #yourhomegirl Justina Hamupembe

Cell: +264812726001

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Last modified on Friday, 15 September 2023 17:13

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