SOLE MANDATE

The majority of residential properties in South Africa are sold under a sole agency agreement. Unfortunately, owners often choose an open mandate when marketing their homes, believing that the more agents they have working on their property, the sooner they will achieve a good price for their property.  In fact, the reverse is true, as no agent likes to spend time and money on a property they might not sell. A competent, self respecting agent would rather list a few properties exclusively than taking a hundred open listings.

With a Sole Mandate, the agent and the agency are contractually bound to spend all their efforts to market the home within a set period of time laid out in the Sole Mandate agreement. Sole Agents spend more time working exclusively on the said property, putting in more energy into the marketing of a home where they know the responsibility of getting the home sold lies with them.

Why a Sole Mandate?

  • Only one agency is responsible.
  • Sole Agent provides activity reports on a regular basis.
  • Concentrated marketing efforts, guaranteed advertising and consistent show houses secured.
  • Property is not over – exposed (too many for sale boards).
  • It will avoid the risk of claims for double commission when the same buyer is brought through your home by two different agencies.
  • Security and privacy are protected as only the Sole Agency will contact the seller and bring buyers to the property.
  • The Sole Agent will only bring qualified and screened buyers.
  • The Property will not be used as a springboard to sell other properties.
  • Buyers shop around so the Sole Agency will have the same buyers as all the agents in the area.
  • A Sole Agent will often obtain a higher price when they know they have time to negotiate with the buyer.
  • More than one agent will often result in a lower price because buyers always want the most house for the least money.
  • Secured after-sales service.

Comparison between different mandates:

SOLE MANDATE

OPEN MANDATE

A personalized marketing and advertising plan will be developed to suit your needs. Activity will be monitored and controlled.

You run the risk that none of the agents will put time and effort into actively marketing or advertising your property, because they will expect that someone else is doing it.

A single agent interacts with you to understand your requirements.

Open mandate properties tend to be merely added to a list.

A sole agent allows Buyers to compete on the property, thereby maximizing realized selling price.

On Open Mandates, agents compete, thereby compromising price.

Continuous feedback from your agent allows for careful price management, thereby maximizing the realized selling price.

Mismanagement of price can result in a lower price being realized.

A sole agent is accountable to your for results.

Agents are less accountable on open mandates.

Real Estate managers monitor and track the service provided by their agents on their sole mandates.

Managers don’t monitor agents performance on open mandates.

Your sole agent will negotiate with potential buyers to get the highest possible price for your property.

With an open mandate, buyers will seek out the agent who will offer them the property at the lowest price.

Less likelihood of commission disputes.

With more than one agency handling your property, commission disputes often arise.

You have the peace of mind of knowing that only one responsible party has access to your property.

Multiple agents frequently mean multiple keys – and the possibility of compromised security.

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