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||SELLING YOUR HOME – No.6: UNDERSTANDING ALL ASPECTS OF A MANDATE

SELLING YOUR HOME – No.6: UNDERSTANDING ALL ASPECTS OF A MANDATE

2019-11-25T00:49:09-08:00September 6th, 2019|

Today we publish the next of our blogs in our 12-week blog series, THE ULTIMATE GUIDE TO SELLING YOUR HOME.

#9: UNDERSTANDING ALL ASPECTS OF A MANDATE  

It is important to understand what different options there are when it comes to granting an estate agent a mandate.

  • Open Mandate:

This gives the owner and a number of specified estate agencies the right to market the property. It is an’ instruction to sell’ by the seller to a number of estate agencies. The owner still has the right to market the property and has no contractual obligations to the collaborating agencies.

  • Multiple Mandate:

This gives the owner and a number of specified estate agencies the contractual right to market the property. It is an ‘instruction to sell’ by the seller to a number of estate agencies. The owner still has the right to market the property, but has contractual obligations to the collaborating agencies.

  • Joint Mandate:

This gives the owner and two specified estate agencies the contractual right to market the property. It is an ‘instruction to sell’ by the seller to two estate agencies. However, the owner still has the right to market his or her own property.

  • Sole Mandate:

This gives the owner and one specified estate agency the contractual right to market the property. It is an ‘instruction to sell’ by the seller to one estate agency. However, the owner still has the right to market his or her own property.

  • Exclusive Sole Mandate:

This gives one specified estate agency the contractual right to market the property. It is an ‘instruction to sell’ by the seller to one estate agency. The owner forfeits his or her right to market his or her own property.

Understanding all aspects of signing a mandate when selling your homeWEIGHING UP YOUR RIGHTS AGAINST THE AGENCY’S EFFORT IN SELLING YOUR HOME

A mandate is there to protect the relevant parties involved with selling your home.

From a seller’s perspective, it may seem as if he or she is giving more rights away as one moves up the scale of the various mandate options. However, an estate agency will always prefer to market the property backed by an exclusive sole mandate or, at least, a sole mandate.

The estate agent’s reality is the time the agent will be spending on marketing your property over the next few months. That time starts with preparing the valuation. This is followed by the conducting of viewings and eventual negotiations on your behalf. Considerable time is then spent on assisting you in the execution of any inspections required and the fulfillment of specific suspensive conditions.

The estate agency’s reality is the cost it will incur in marketing your property over the period. This starts with the photography session, which is followed by the listing on one or more secondary property sites. It will include the occasional boosting expense to give your property more exposure at selected times. In addition, the agency will be using, and paying for, social media advertising to promote your property selectively.

It is only natural that the more secure a mandate owned by an estate agency, the more marketing time, effort and cost it will expend on a property. The owner/agent relationship is always critical in the success of the selling of a property. This relationship is normally best served by providing the property agency with a sole mandate to ensure you receive maximum effort from the marketing process.

Please note that such a mandate should also specify the time (mostly 3 months), the marketing price and the fee/commission payable to the agent upon transfer of the property.

NEXT WEEK: STAGING YOUR HOME FOR MAXIMUM EFFECT

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