“Too many cooks spoil the broth”. If you’re a seller, you’ve probably come across the terms “sole mandate” and “open mandate” during your home selling journey, and they may leave you feeling uncertain. To help you make an informed decision, let’s explore the differences between sole and open mandates:
What is a Sole Mandate?
A sole mandate is an exclusive contract between a home seller and an agent, that grants a specific timeframe during which you cannot appoint another agent to market your property. Only after this timeframe has expired are you allowed to appoint another agent. While you could possibly retain the right to market and sell the property yourself, this is contingent upon the terms outlined in the contract you signed. However, if you give your agent an exclusive sole mandate, you forfeit the option to sell your property privately.
What is an Open Mandate?
An open mandate, on the other hand, means that your property is listed with multiple real estate agents from different agencies, each of whom will be allowed to market and attempt to sell your home. Open mandates are often verbal agreements, which leaves room for misinterpretation and potential conflicts due to the lack of a written agreement.
Sole Mandates: Simplicity and Safety
Selling your home can be a stressful experience, and having multiple agents trying to sell your home can exacerbate the chaos. While it’s commonly believed that involving multiple agencies will expose your home to more buyers and result in a quicker sale, the reality is that signing a sole mandate and entrusting one agent to secure the best sale is often more effective. Furthermore, a sole mandate provides a safer option as you only have to deal with one agent instead of several.
Dedicated attention
By working exclusively with one agency, homeowners benefit from the undivided attention and focused efforts of a dedicated team, increasing the likelihood of a successful sale.
Expertise and resources
A sole mandate allows the chosen agency to leverage their experience, resources, and network to market the property effectively, potentially attracting more qualified buyers.
Pricing control: Homeowners can work closely with the agency to determine an optimal listing price, considering market conditions and the property’s unique features.
Advice from a Single Source versus Multiple Sources
When you work with a trusted real estate agent, their guidance can save you money, time, and stress. A reliable agent will provide you with valuable information and advice. However, when you work with multiple agents, it becomes challenging to determine whose advice to follow. Open mandates also increase the risk of potential double commission claims. With a sole mandate, you have the freedom to be open and honest with your agent, and they will be readily available to address any uncertainties you may have about the selling process.
Sole Focus versus an Open Playing Field
Agents operating under a sole mandate are fully committed to guiding you through the selling journey. With a signed sole mandate, your agent will be motivated to invest maximum effort and resources to achieve your home selling goals. On the other hand, agents under open mandates may be less inclined to dedicate extensive time and resources to marketing your property, which can reduce your home’s chances of selling.
Final Advice
Signing a sole mandate presents an opportunity to simplify and minimize the stress of selling your home. However, before committing to any mandate, it’s crucial to conduct your due diligence and find an experienced real estate professional who prioritizes your best interests and can offer knowledgeable advice to help you make informed decisions.
Regardless of the route you choose, we respect your decision and are ready to provide assistance throughout the process. Please contact us to discuss the various options.