Mandates

Before we talk about how we will market your house it is important to understand the difference between the different mandates as this will directly affect the way a home will be marketed.

DIFFERENT WAYS TO SELL THE PROPERTY

Success Rate

Sole Mandate
76%
Joint Mandate
22%
Open Mandate
24%
Sell by Owner
2%

Sole Mandate

 An agreement with a real estate agency to exclusively market on behalf of a client. Normally a three month agreement will be signed.

Joint Mandate

This is when 2 agencies are contracted to market a property.
The Seller gets some of the benefits of a sole mandate but also many of the disadvantages of an open mandate.

Open Mandate

Many Agents working on the same property with no contractual obligation on the Agent.

Private Seller

The Seller is responsible for all the costs, marketing and legal efforts.

Sole Mandate

If the seller is serious about selling their property and want results, then the most effective, and undoubtedly, the most successful method of selling the property, is by marketing it via a SOLE MANDATE.

Even if you don't use Keller Williams, going the route of a sole mandate will always be your most successful option.

Joint Mandate

With a joint mandate, the Seller gets some of the benefits of a sole mandate but also many of the disadvantages of an open mandate.

Open Mandate

If the property is with a few agencies on an open mandate we would probably not not try to market that property for various reasons.

With an Open mandate the seller runs the risk of:

Miscommunication

Agents advertise the home at different prices or downgrade the property to Buyers who have seen it with some other Agent. Agents may start using your property as a negative comparison to other properties being marketed in the same/similar price bracket on the sole mandate.

Over Exposing

Too many Agents will over expose the property by doing show days every Sunday and will be advertising and pursuing the same Buyers, which may lead to lower offers

Lack of Investment

Agents do not invest time, money and energy on open mandates.

Buyers being shown sole mandate properties first: It’s a fact. An Agent shows potential Buyers his/her sole mandate stock first.

No marketing plan

Agents don’t commit to a marketing plan (especially not a personalised marketing plan) when advertising a property on an open mandate.

Paying double commission

When a property is on the open market, Buyers often get confused with who has shown them a particular property. If a Buyer buys through an agency other than the one who originally introduced him to the property, the Seller stands the risk of having to pay double commission.

Loyalty with Buyer

Agents are incentivised to sell the property before any of the other Agents. They will, therefore, work to secure the sale for their Buyer against the Buyers of the other agents. Essentially, the Seller is paying the Agent to work in the Buyer’s interest, and not in his/her best interest.

 

Lost Info

Vital information being forgotten by the Seller as he is exposed to numerous Agents with different messages.

No Confidentiality

No confidentiality as the Seller’s personal information is being shared with anyone. An Agent working on an open mandate has no loyalty to the Seller, he/she is loyal only to conclude a sale before the others, often not in the best interest of the Seller.

No privacy

No Privacy with total disruption and inconvenience to the Seller when dealing with everyone in the marketplace.

The "Sole Mandate Experience"

As you will see in my 18 point marketing plan I intend to throw a Tremendous amount of skills, effort, time and marketing budget to market your home

This however is only Possible if I know I Have 3 months to market the property on a sole mandate.

At KW do however Have a clause in ALL our contracts that any client is welcome to cancel the Sole Mandate after 30 days.

COMmision

At Keller Williams our Commission rate is anywhere between 5.5%-7.5% (Excluding Vat) Depending on the property. 

We take note of all the 3% Agencies but we do believe that this is not a sustainable way for the long term. We have seen in the market that this results in a budget service.(lower offers)

Our research has shown that the Difference between a budget service and premium service can be up to 15% in average offer price.

If you are interested lets meet to do a valuation!