EXCLUSIVE MANDATE VS OPEN MANDATE
In my decade-long tenure in the property industry, the question of whether to opt for an exclusive mandate or an open mandate has been one of the most recurrent discussions. From my experience, I can confidently assert that having an exclusive mandate is the most effective way to sell your property when paired with a professional agent.
Often, sellers believe that having multiple agents or open mandates will lead to a better price for their property. However, the reality is quite the opposite. When multiple agents work on a property under open mandates, their focus often shifts towards securing a buyer quickly rather than negotiating the best possible deal for the seller. As a Vanguard Properties professional, I have seldom taken on open mandates due to the challenges they pose in delivering a professional and ethical service. In an open mandate scenario, where there's a free-for-all and not all agents are well-trained or morally sound, maintaining ethical standards becomes particularly challenging.
Reasons for Choosing an Exclusive Mandate over an Open Mandate:
- Focused Professionalism: Selecting a single agent who is regarded as the most professional and visible in your area ensures a superior selling experience. This exclusive commitment guarantees dedicated efforts towards securing the best possible price for your property.
- Unified Marketing Strategy: By entrusting your property to one agent with a cohesive marketing strategy, you preserve the exclusivity of your home. It prevents your property from appearing desperate in the market, which can happen with open mandates where every agent is vying for attention.
- Negotiation Power and Professional Fees: An exclusive mandate facilitates discussions on a better professional fee as the agent is singularly focused on selling your property. Moreover, it equips your agent with the necessary tools to negotiate the best possible price without the pressure of selling to the first buyer, as is often the case with open mandates.
- Enhanced Safety and Security: In the context of South Africa's social climate, opting for an exclusive agent provides an added layer of safety and security during the property sale process. With controlled viewings and pre-qualified buyers, homeowners can mitigate risks associated with open mandates, ensuring a more secure and comfortable selling experience.
It's crucial to note that granting an exclusive mandate should not be based solely on personal preferences but on the agent's knowledge of your area and their ability to provide professional advice. Many sellers have been disappointed after giving exclusive mandates to inexperienced agents who lack the expertise to handle market fluctuations and adjust marketing strategies accordingly. Therefore, it's imperative to choose an agent with the right experience and ambition to successfully sell your property.
In conclusion, I advise homeowners to explore their local area, engage with active agents, and assess their compatibility and professionalism before granting an exclusive mandate. By fostering a relationship grounded in trust and synergy, homeowners can increase their chances of achieving the desired results in the property market.