Mandates Explained

by Quanita Chohan • 3 MIN • 527 Words

Mandates
Let's start with the Open Mandate:

Sellers think that the more estate agents they get involved the better the chances of them selling their property but that's rarely the case. An estate agent can't market a property without permission from the legal owner of the property and that's what a mandate is, an agreement between the seller and the estate agent that outlines the essential information such as the listing price of the property, the start and end date of the mandate, the t & c's, & the professional fee due to the agent once the mandate has been fulfilled.

Estate agents basically work for free until they sell the property they are mandated to sell. They have to absorb all of the costs related to advertising, marketing and showing of the property until its sold. Only on registration, which usually takes a few months do they recover their costs. Sometimes the property doesn't sell, and the agent doesn't recover their costs at all.

With a signed mandate the agent has some sought of guarantee that the costs incurred to sell the property will be recovered during the mandate period. Now when you opt to give many agents an open mandate, the agents have absolutely no guarantee because they have no control as any agent can sell it at any time and they lose out. It therefore doesn't make sense to an agent to spend good money on marketing an open mandate.

Ultimately you going to have various agents having knowledge of your property but no one really making the effort to market it for you. You going to have various online adverts with conflicting information and photos and pricing, not to mention a ton of for sale boards outside your house. This can be very confusing to a potential buyer and will put them off.

The Sole Mandate

A sole mandate entails giving one agency the sole right to sell your property for a specified period. it's more effective than the open mandate but the effectiveness of the mandate will depend on the agent you select to give the mandate to. You as the seller have the right to also sell the property during the mandate period but there might be a clause in the sole mandate that should you sell it, the agency will be entitled to their professional fee or commission.

The MLS Exclusive Mandate

MLS stands for Multi Listing Service which a platform for agencies to share their listings and their fees. The MLS Exclusive Mandate entails listing the property with one MLS agency and then its shared so any of the members can sell the property and the commission is split between the members. This type of mandate gives you the convenience of working with one agent and the benefit of having more exposure with more agents working on your property.

More Articles:

Top Reasons Why Your Home Isn’t Selling!

Avoiding Double Commission Disputes: A Seller's Guide

The Impact of Home Maintenance on Resale Value

MLS Goldfields: A Game-Changer for Home Buyers and Sellers

Did you know that Q Prop is part of the MLS Goldfields Team? Teamwork sells houses faster!

#propertymanagementwelkom#qpropwelkom#welkomproperty#investmentproperty

• S H A R E •