In answering this question we will assume that, as a property Seller, you want to achieve the highest price the market will pay, and want the least amount of inconvenience and stress in selling your property.
On an Open Mandate the following is true:
• Multiple real estate companies have your property listed as an open mandate
• No one is accountable to you and no one takes any responsibility for your listing
• You have to deal with a number of agents
• As there is no accountability you get little or no marketing or feedback
• Agents compete against each other to sell your property at any price – not the best price.
On a Joint Mandate you will get the following:
• Two or more companies will share a mandate on your property
• You should receive some marketing from each company
• As accountability is shared, there really is very little genuine accountability to you
• As with an Open Mandate, the agents compete to sell your property at any price, rather than the best price, for fear you accept another offer where they earn nothing.
A Sole Mandate with a professional company gives you the following:
• A single company that invests money and time in a Marketing Plan
• A single company and agent that is accountable to you, and takes responsibility
• Regular communication and feedback on activity and buyer interest
• An agent who is looking for the best offer in the market, not just any offer
• An agent who is trained to get buyers to their maximum offer, not their lowest offer
A professional agent, on sole mandate, will work for you as the seller to obtain the highest price the market will pay. On Open or Joint mandate that simply doesn’t happen.
When considering selling it’s important to interview different agents to see exactly what they can offer you in terms of Marketing and Service. Then list on Sole Mandate with the company that has the best tools, resources, and marketing to showcase your property to the market. It’s a fallacy that listing with more companies gives you access to more buyers. There is only one pool of buyers, and an effective Marketing Plan means you will be visible to all those buyers.
Always insist in the Sole Mandate agreement that there is an obligation on the agent to carry out specific Marketing – failing which you need to be able to cancel the mandate after a reasonable notice period.
Not only will a sole mandate with the right company achieve you the best price in the market, but the entire experience should be a positive one.