The point of sole mandate

Property for sale? Read on before you decide to contact every estate agency in town. Estate agency expert Linda Erasmus explains how a sole mandate agreement can benefit the seller.

The saying "Too many cooks spoil the broth" is very true when it comes to real estate. It is therefore of utmost importance that you think twice before inviting various estate agents to sell your property.

How do estate agents sell houses? They place advertisements to attract potential buyers, which means that advertising plays an imperative role in the selling process as it influences the way in which your property is perceived. That said, it is not the estate agents as such that attract the buyers but the advertisements they place. It is also important to note that good advertising would hardly sell a bad product but good advertising, backed by a good product, will attract the right buyers.

Let me explain: A mixed message is sent to potential buyers if ten estate agents all advertise the same property. This can hinder the selling process as buyers may get confused about what is being offered. This is the reason why we often see one house being advertised by various estate agencies at ten different prices. As a seller, you stand the chance of losing control over the selling and marketing process through following the multiple agent option.

If you invite ten different agents to sell your property, they will place an advertisement to attract as many buyers as they can. They will also take photographs of the property for sale and I can guarantee you that most of these photographs will be taken from different angles as we all have our own ideas in terms of what angle will make your property look its best. The text of the copy will also differ as every agent has their own style. The outcome of each estate agent's final product – a confused buyer who struggles to determine whether the house he saw on page 2 is the same one as advertised on page 6 of the publication. Send the right message to potential buyers – one of exactness and exclusivity.

As estate agents, we work with a common pool of buyers as the various forms of media in which we advertise allows us to reach a certain number of people. It is also for this reason that you are unlikely to lose out on a deal if you appoint one sole agent to oversee the marketing and selling process of your home. Signing a sole mandate agreement is a wise option for any seller, especially if you can reach an agreement with your agent that he will share his commission with any other agent who secures a suitable buyer.

But what are the other benefits of signing a sole mandate agreement? You will benefit from signing a sole mandate agreement if the agent undertakes to:
• advertise your property on a weekly basis in a publication/s of your choice
• host a show house every second week until your property is sold
• design a full colour brochure with professional photographs and text to be handed out during the sole mandate period.
• advertise your home around the globe (when you deal with an international agency)

You will furthermore get exclusive exposure if you advertise your home with one agency. It will also benefit the end-result in price if one agent controls all incoming offers.

These are all extremely important aspects that will influence the sale. It is also something that you as a seller can rely on.

It is therefore important to look at the marketing process that the agent will follow before you sign a sole mandate agreement.
• Ask to see examples of the marketing material - Ten different, smaller ads will reach more potential buyers than one big ad. The size of the advertisement is not as important as the quality of the copy and professional photograph.
• Do your homework – get references. A previous client will tell you how the agent operates
• Decide what price you want to ask for your house. Do not just go with an agent because he said that he could get you a higher price

Always remember that you determine the price at which you wish your home to be marketed but that you appoint an agent to do the marketing for you. That said, there are no negatives to signing a sole mandate agreement if both parties involved are honest people. It is also important that both parties must come to an agreement on what their expectations from one another are. Quite often, the seller simply takes some items for granted. It is therefore important that the marketing process forms part of the agreement with your estate agent, and this agreement needs to be signed.

A sole mandate is the only evidence the agent has that the seller will pay him for his expertise and services. Sellers tend to forget that agents need to spend money on advertisements etc. to sell the property. If you order a pool, you sign the contract first - no contractor will install a pool and enter into a contractual agreement after the pool has been installed.

The same rule applies when it comes to the sole mandate agreement – by signing one, you give permission to the agent to bring prospective buyers to your home on a daily basis. You confirm that you agree to the terms of the sales process. A sole mandate is simply a business agreement - it is a legal document that spells out an agreement between two people. Our law system has looked into the sole mandate agreement and has implemented clauses that protect both parties. The only thing you need to do is to appoint the right agent for the job. Of course, in our current times, security is an important factor and this is aided by a mandate with a sole agent.

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