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www.thevillagenews.co.za
22 May 2019
MY HOME
Mandate or no mandate – that is the question Writer Jana Smith, Harcourts Hermanus
A
ed should the homeowner be satisfied with the efforts of the sales agent.
s a home seller, deciding to give a sole mandate to a real estate agent may be a tough decision to make, because giving exclusive responsibility to a single agent can be a difficult concept to wrap one’s head around.
One of the best ways to select an agency is to ask an agent to give you a written marketing plan before you award a sole or exclusive mandate.
If, however, the seller is equipped with the right know-how, there are many benefits to choosing this option. In deciding to use a mandate, the homeowner is required to award commission to the specific agent, if the property is sold within the specified number of days declared within the mandate. When entering into this legal contract, which has to be in writing, the seller needs to bear in mind that the mandate does not guarantee the sale of the property. It should rather be regarded as a commitment from the agent to perform at the highest standards and exhaust all resources in the effort to sell your home. Once the difficult decision of agreeing to work within the parameters of a sole mandate has been resolved, an even more challenging option presents itself regarding who to choose to represent your property. It is the responsibility
This should clearly state what marketing channels your agent will use and also what financial and manpower resources will be committed, over what period of time, to the job of getting your of the seller to make an informed choice with clear knowledge of the agency.
property sold.
In the current real estate market, home sellers need to be sure that their real-estate agent has ‘real’ marketing muscle and, more importantly, is committed to using it. Awarding a sole mandate to one agency, for a period of more than three months, is not advisable. The duration of 30 to 60 days is more reasonable.
It should, for example, provide not only for online and print advertising but also for the promotion of the property within the seller’s own suburb. On the other hand, the seller should be assured that the property would receive exposure through the agency’s own national and international referral network to source other possible buyers.
Remember, the mandate can always be extend-
The understanding between seller and agent
should also include:
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An undertaking that the agent will prepare a detailed market-value report, so that the probable selling price can be estimated, based on recent sales of similar properties and currently competing properties in the same area. An undertaking that the agent will provide regular feedback on marketing progress and reviews of the property’s competitive position. An undertaking that the agent will prepare an estimate of selling expenses, reflecting the estimated net cash the seller will receive from the sale. An undertaking that the agent will ensure that prospective buyers are properly prequalified and able to afford the property.
Having such a plan in hand gives the seller peace of mind and helps to prevent all sorts of problems that can really put a spoke in the wheel of a home-sale campaign, such as under-advertising, a loss of interest on the part of the agent and, ultimately, a shop-soiled property that just won’t sell.
COMMUNICATIONS SPECIALIST
