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Signing a sole mandate - does 'one size fit all'

Signing a sole mandate - does 'one size fit all'

Author: Pranil Maharaj
Date: 2017-05-05

Whether you're selling a luxury home on a golf estate or an inexpensive apartment, is it still advisable to enter into a sole mandate agreement and, if so, would the terms of the mandate differ

In answering this question, let's first determine whether or not a sole mandate is required for properties listed in different market segments.

The purpose of a sole mandate is to instruct a single estate agency to invest their time and resources in marketing a listing in order to attract strong buyer interest and sell a property at the highest possible price.

This is true irrespective of which market segment you are selling in. The alternative to a sole mandate would be a joint mandate or an open mandate, and in both these instances you are asking agents to sell your property at any price - not at the best price.

The reason for this is that on an open or joint mandate the agent will do their best to get a seller to accept their offer, not because there isn't a better offer out there, but because the agent won't get paid if their offer isn't accepted. That sadly is the reality.

When selecting your agent, you have to ensure you determine if they are proposing a solution appropriate for your property, as "one size does not fit all".