Commitment, Faith & Sole Mandates

Once upon a time a couple decided to sell their home. They had to choose whether they wanted to open it up to several different agents, or put their faith in just one and hope for the best. There are common misconceptions about both open and sole mandates. The supposed advantage of an open mandate is that you expose your property to a larger audience. Well a few years ago that might have been true, but in today's digital world the playing field has been levelled by what are called 'property portals'. The flavour of the moment is Property24 - who actually bought their major competitor 'Private Property' in November last year. So let's say you have four agents promoting your house on a property portal, and one of them lowers the price, then the other agents are under enormous pressure to lower it even more so that they get phoned first. Eventually there is an erosion of value as buyers play one agent against the other to secure the best deal. Then there is the problem of taking a buyer to view a house and it turns out they already saw the property with another agent. Time is money, and agents don't like wasting their time. A further problem with open mandates is the effort level the average agent is willing to put into them. Most agents devote the greatest amount of effort on their sole mandates. They won't admit it, but they do. After all, it's human nature. Where you are shown loyalty and commitment it is only natural to return the favour. I haven't even mentioned the threat of sellers having to possibly pay double commission, as it doesn't really happen all that often. The other side of the coin is that once an agent secures a sole and exclusive mandate they can vigorously fight for the best price - as they are under no threat of being undermined. They can commit time and effort and clearly focus on the task ahead - without having to constantly look over their shoulder. Because believe me it is hard work selling properties in the current market. And most importantly, the agent can then negotiate with potential buyers from a position of strength. If you want to sell your home for the highest price the market will bear - then you must make a leap of faith and sign a sole mandate with the busiest and most experienced agent in your area. It really is a no brainer.