Sole Mandates – Do I Really Need One?

When you sell your property you definitely have choices.  Questions you will be considering are: “Which agent or agents will I list with?” and “Do I list on a sole or open mandate?”

ImageThe answers to these questions depend on the answer to the following question:  “Do you want to just sell your property?  Or do you want to sell for the highest price the market will pay?”

In my experience, every seller I ask tells me they want the highest price the market will pay.  Assuming that’s the case, allow me to explain how you achieve that.

The average property buyer will want to acquire a property at the lowest possible price.  That’s entirely normal and true for all of us.  The result is that buyers will generally come in with an offer on a property that is below list price.  Now a buyer will pay market value if he has to – but if he can get away with offering less, he will.

So when will a buyer pay his maximum for a property that he genuinely wants?  Quite simply: only when he has to.  And he only has to when he is competing against other buyers for a property or when he has a fear of losing the property that he really wants.

If you want to be in this situation – where a buyer makes his best offer for your property – then you have to ensure your property enjoys the most powerful marketing possible.  It’s only aggressive marketing of your property that will ensure all the buyers in the marketplace will see your property, enquire on it, and then compete against each other for it.

So that’s your goal – to create buyer competition for your property.  If this is only possible with outstanding marketing then you need to ask yourself: “Just how will I ensure I have the best marketing available to create buyer competition which will lead to the best offer?”

The only way you will achieve this is to list on sole mandate with a reputable company that offersImage you a world-class marketing plan that’s guaranteed.  In my experience the only guarantee worth anything is the one in writing.  Would you really entrust the sale of your property to an agent who can’t commit in writing to exactly what marketing you will get?  Especially when this is the most critical factor in determining what you will sell for?

Some sellers think that it’s best to list on open mandate so that they get access to buyers from different estate agencies.  The reality is that there is only one pool of buyers.  They don’t belong to any agency.  If you list with one agency that guarantees you the best marketing, in writing, then you can be confident you will be visible to the only pool of buyers out there.

They will see your property, enquire on it, compete for it, and make their best offer.

This is only possible on a sole mandate with a company that can deliver to you the best marketing available.  Pick that company and sell for the maximum the market will pay – you deserve it!

Steve Caradoc-Davies

Principal of Harcourts Platinum

Director of Harcourts South Africa

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