Sole mandates - friend or foe of a seller?

Recently, Ronald Ennik (ex Pam Golding and now with his own real estate company) made some sweeping statements in the Financial Mail about the ills of granting a sole mandate to an estate agent. To read the article please click: http://www.fm.co.za/fm/2012/07/18/a-chilling-clause 

It is a fact, that a sole mandate (if given for the right reasons) is possibly the best way to ensure that a realistically-priced property is sold as soon as possible.

Here are some advantages of granting a sole mandate:

· Security of the property and its inhabitants is maintained

· The seller only deals with one estate agent

· It ensures that a double commission claim can never be instituted

· The estate agent really focuses on the marketing - a successful sale means that the sole mandate is like a post-dated cheque to him/her

· The property is seen by the public as “exclusive” and the danger of over-exposure is eliminated

· The percentage commission is agreed upon prior to the sale and the agent negotiates a price as high as the market allows

Most sellers argue that if the sale is urgent, as many as possible estate agents should be instructed to market the property. It is suggested that this is wrong. Nothing screams of desperation as a few “for sale” signs at a property and deemed desperation usually results in a much reduced price.

Who should you appoint as a sole agent?

· Determine which individual agent is the most successful in your area. Drive around and look for “Sold” boards. However, since security issues exist in many suburbs, seller often do not allow these boards anymore.

· Visit the major property websites  (Property 24, Private Property etc) and search for a property similar to yours in the area. Within a matter of minutes you will be able to determine who the “mover & shaker” agents are. Prepare a shortlist of the best performers.

· Invite the agents on the shortlist to do an evaluation and sole market presentation. Choose the most impressive one.

· Ask around - clients who had good experiences with estate agents are often more than willing to refer them.

· Try and stick to agents employed the well-known brands. They usually employ the most professional agents, maintain and are proud of quality service delivery and constantly train their agents.