At first glance the idea of an open mandate, where a number of property agencies market a particular property, may appear to offer an important advantage over a sole mandate whereby the seller’s property is marketed through more than one channel. “They often assume that this would increase the property’s chances of being noticed and snapped up by prospective buyers, but this is not necessarily so,” says Shaw.
When an agency is awarded an exclusive mandate on a property it is given total responsibility for the sale, he observes. This allows it to make a complete commitment to the selling of the property and to deploy greater resources in the advertising and marketing of the property.
“The PGP exclusive mandate offers numerous benefits including complete access to the enormous expertise and experience that is available through the agency,” adds Shaw. “It is designed to do nothing less than guide sellers through every aspect of their sale. Backing this up is the PGP marketing system, which is a carefully balanced mix of cutting edge digital and traditional media to ensure the property reaches the right potential buyers at the right time.”
“An agency with the necessary expertise and marketing leverage behind it is in the perfect position of being able to make an exclusive mandate count. Indeed, not only does it offer a more convenient way to market a home, it is also more effective.”
Shaw explains that whereas a price is agreed upon during the signing of an exclusive mandate, an open mandate tends to encourage agents to drop prices in order to try and clinch a deal as rapidly as possible. “The open mandate encourages competition between agents rather than among would-be buyers, which is a far from ideal situation for the seller, who seeks to achieve a sound return and market-related price,” he adds.
Shaw points out that The Estate Agency Affairs Board (EAAB) Code of Conduct requires agents to be authorised by the seller to market a particular property either through an open or closed mandate. A dual mandate, where two agencies are allowed to market a property simultaneously, is a further option. Whereas an open mandate is usually a verbal contract, an exclusive mandate is a written one that must stipulate the price at which the property is to be marketed, as well as the duration of the contract. The agent is also obliged to provide a written marketing plan to the seller.
“The Code means that the seller has legal recourse if the agent does not perform as he or she should,” adds Shaw. “It gives the seller control and ensures that agencies take greater ownership of the selling process.”
The written marketing plan that the agent must develop in order to obtain a sole mandate brings with it a number of further advantages. The plan makes it necessary for agents to discuss client needs and expectations with them while allowing them to agree on an achievable price together. It also allows the opportunity to explore the best ways to take the house to market. Agent and seller are able to decide which publications and online marketing tools they should use so that they can achieve maximum return for their efforts. Shaw points out that each property is unique and situated within its own distinct market. As such, every home requires a tailored marketing approach, which is best achieved when an exclusive mandate is in place.
PGP devises a unique strategic approach for each of its clients, which involves the development of a comprehensive buyer’s profile for the property and pre-qualifying buyers. A pricing strategy is also developed for the seller. According to Shaw, the PGP methodology is designed to assist the seller achieve true market value.
“Security is another important factor that should be considered when deciding whether to opt for a sole or an open mandate. A single trusted agency that has been granted an exclusive mandate is better able to control exactly who has access to the property,” observes Shaw.
“It cannot be emphasised enough just how important it is to choose the correct agency to partner with when selling your home, particularly when you market it through an exclusive mandate. Remember you are entering into a partnership to sell what is probably the greatest asset you have ever possessed. It is therefore imperative that you are able to trust your real estate agency. Choose an agency with a proven track record and the necessary experience to provide you with a high level of advice and service.”
“The PGP exclusive mandate is a structured and effective means of marketing a home and offers sellers much greater convenience and peace of mind than an open mandate,” he concludes.
For further information please contact Pam Golding Properties on 011 380 0000.