Sole Mandates - What you need to know !
Category Contracts
Today we have two perspectives on the biggest question sellers have and have always had. It is in many ways a big controversial subject in the industry between agents and prospective sellers.
Can you guess the question? Yep, you've got it: Why do I need to sign an exclusive mandate to sell my property?
"I got this question at least 6 times this week. I get excited about this question because not only are prospective clients becoming more knowledgeable about the market (For Sale and Sold values) but they also seek knowledge about the most effective way to get their house in the market and sold in the best way possible".
There are obvious advantages to listing your property exclusively with one agency and there are of course reasons that are not that obvious which we are going to point out in this article. Before we get there, I know what you could be thinking and no, we are not trying to get you to list with us specifically but most definitely list exclusively with your area expert.
1st Perspective - Consider it as a job interview
When you prepare to sell your property, amongst a list of many, it would be beneficial for you to prepare a list of question that you would ask when you were interviewing someone for a job. Yes, you read that correctly. The meeting that we all know as a valuation or listing presentation is in hindsight a job interview for the agent. The status quo is that agents do the homework and bring the results and findings back to you. They know things about the property market that you don't and that is fine. If you however have not prepared a series of questions you could be open to employing an agent based on their telling and selling and not based on your needs being fulfilled.
What type of questions should you prepare?
- Are you or your agency actively working on properties in my suburb? ( You can discover this by searching Property24 or visit their websites and social media pages)
- Can you show me the quality of your marketing? (Are the pictures of the properties that they are busy marketing of superior quality?)
- What mediums of digital marketing are you using and relying on to find my perfect buyer?
- Does your agency or yourself have a marketing plan that I can follow along with you? (This is the tool you as the employer will use to keep agents and agencies accountable)
- Do you have testimonials and references? (Any agent that gives great service have clients who will vouch for them in testimonials and will be willing to be called as a reference)
- Can you show me the results of the properties that you or your agency sold in our area? (This information will include what it was listed for, what it finally sold for and over what period of time)
- How do you pre-qualify buyers? ( The agent should be able to show you which bank or bond originator they work with)
You might not know who and what you are looking for in an agent to take your property to market, but after this series of questions you would discover what and who it is that you want to be working for you.
2nd Perspective. Exclusive mandate. "To be or not to be. That is the question"
" I'm truly passionate about working for my clients exclusively. Some of my clients laugh when I say that the responsibility keeps my team up at night. I am utterly invested with time and effort in finding innovative ways to generate a MAXIMUM BUYERS REACH for my listings, I really don't have the time to give that energy to a seller who is not willing to commit to me. That Is why clients list with me exclusively, because, as in life, when you put your all into what you are passionate about, a result is inevitable" says Cobus du Preez - a prolific real estate agent in the Northern Suburbs.
Listing your property with multiple agents is risky and here is why:
- You could entertain viewings at random hours of the day for buyers who aren't pre-qualified to buy your property.
Your EXCLUSIVE listing agent is not pressed to bring just anyone to the property. They will have time to pre-qualify buyers on their financial ability to buy and their physical needs in a prospective home.
- You are receiving calls for viewings from 6 to 10 different agencies for different viewing times. It's a waste of time. Your EXCLUSIVE listing agent respects and understands your time restraints and after hour obligations and will work around those times with pre-qualified buyers. Buyers who are serious, will conform because this listing is exclusive and cannot be seen through anyone else.
- Your marketing is not controlled. The consumer's perception of multi listed properties is that the seller is trying to sell fast and desperately. The other consumer perception is that there might be something wrong with the property, why isn't it selling? Especially when your agents are all charging different commissions and the advertising prices differ, this scares most serious buyers. Your EXCLUSIVE listing is presented with pride and captivates the attention of serious buyers who believe there is value in your property and are excited to view it.
- There is no buyer competition. When you multi list your property, different agents bring their buyers one by one and there is no urgency to make a decision. Your EXCLUSIVE listing agent arranges viewing times strategically for the one buyer to see the other. That sparks a fear of missing out on an opportunity to buy, which in return brings more offers, faster and higher, which gives you as the seller, more negotiation power.
This is only but a few key point benefits of the Exclusive Sole Mandate option. In closing, we trust that your conclusion is that the exclusive listing is beneficial in 3 ways - SELLER WINS - BUYER WINS - AGENT WINS.
Author: Cobus Du Preez
