Sole Mandate vs Open Mandate: What Sellers Need to Know
The The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 4 | The Property Perspective with Etchells & Young
When you decide to sell your property, one of the first decisions you may face is whether to give one agent a sole mandate or allow several agents to market the property on an open mandate.
In Episode 4 of The Property Perspective on 919 FM, Les Pretorius explains how property mandates work and shares practical advice for sellers and buyers, from pricing and pre-qualification to complex rules, failed sales and early occupation.
In This Episode
Les takes listeners through some of the important decisions that arise when putting a property on the market or preparing to buy one.
Les discusses:
What a property sales mandate actually means
The difference between a sole mandate and an open mandate
Why sellers may benefit from appointing one committed agent
Why correct pricing is critical when selling
Why buyers should consider pre-qualification before house hunting
Rules buyers need to check before purchasing in a complex or estate
Common reasons a property sale can fall through
What to consider when a buyer wants early occupation
Watch Episode 4
The Property Perspective airs weekly on 919 FM.
What Is a Property Mandate?
In simple terms, a mandate gives a property practitioner the owner's instruction and authority to market a property for sale.
Les explains that the mandate establishes how the property will be marketed and whether one agent or multiple agents will be authorised to work on the sale.
Understanding that difference before signing can help sellers choose the approach that best suits them.
Sole Mandate or Open Mandate?
With a sole mandate, one agent is appointed to market the property for an agreed period.
Les explains that this allows the appointed agent to commit their time, resources and marketing effort to presenting the property professionally and working towards the seller's objective.
With an open mandate, several agents may be marketing the same property at the same time. While this may appear to offer greater exposure, Les discusses how competition between agents can sometimes work against a consistent marketing and pricing strategy.
Correct Pricing Matters From Day One
One of Les's strongest pieces of advice to sellers is to price the property correctly.
Today's buyers have access to a significant amount of property information and can compare similar homes on the market quickly.
If a property is priced outside the range buyers consider realistic, the seller may lose the attention of qualified buyers who are comparing it with competing properties.
Why Buyer Pre-Qualification Is Important
For buyers, Les recommends understanding your financial position before becoming emotionally invested in a particular property.
Pre-qualification can help establish what you may realistically afford and can highlight credit or affordability issues that may need attention before a bond application is submitted.
It also helps buyers focus their property search within a more realistic price range.
Buying in a Complex or Estate? Check the Rules
The property itself is not the only thing a buyer needs to consider.
Les highlights the importance of understanding the rules that apply in sectional title complexes and residential estates.
These may affect issues such as pets, noise, alterations and what owners may or may not change on their property.
Knowing these restrictions before purchasing can prevent unpleasant surprises after transfer.
Why Can a Property Sale Fall Through?
Finance is one of the most obvious risks.
A bond application may be declined because of affordability, credit history or other financial issues, which is one of the reasons pre-qualification can be valuable.
But finance is not the only issue. Les also discusses how disagreements following a property inspection or repairs required by a buyer can create problems if the parties cannot reach an agreement.
What About Early Occupation?
Sometimes a buyer needs to move into a property before transfer has been completed.
Les explains that this can introduce additional risk and is generally something that needs to be handled carefully.
Where early occupation is necessary, important details such as the occupational rental and the terms of occupation should be properly dealt with in the agreement so that both buyer and seller understand the arrangement.
A Key Takeaway
A successful property sale starts long before an offer is signed.
Choosing the right marketing approach, setting a realistic asking price and working with properly qualified buyers can all contribute to a smoother transaction.
For buyers, understanding your budget and the rules that apply to the property before committing can be equally important.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Thinking of Selling Your Property?
From establishing the right asking price and marketing strategy to negotiating offers and guiding the transaction through to transfer, professional advice can make a significant difference.
Speak to the Etchells & Young team about marketing your property for sale.
