As its name suggests, the exclusive mandate gives the exclusive right to sell a property to a single estate agency, whereas an open mandate allowing you to deal with many agencies.
Are there advantages and disadvantages attached to exclusive mandate? If so, which ones? Hereunder everything you need to know on this subject.
The pros
Exclusivity equals to efficiency: the agency benefiting from a sole mandate will be more determined, enterprising and motivated by the potential commission, hence maximizing their input of time and energy in negotiating the best deal for the seller. Boosting your property will be their priority, with a good management of the marketing aspects, top positioning in ads and a good exposure in the showcase of the agency. It’s a guarantee for a successful sale and in a reasonable time frame, knowing that sales in real estate market can take a lot of time.
Time is on your side: generally, exclusive mandate is limited in time, hence a good opportunity to sell quickly. However, the period of time can be negotiated, as awarding an exclusive mandate for one month only. Moreover, administrative procedures are much more simplified.
Common file, a definite asset: with an exclusive mandate, you benefit from a service called common file. It is a database where real estate agencies suggest your property to their potential purchasers. Some agencies work in group. Thus, the sales advert will be relayed to clients of all agencies that collaborate with the agency to whom you have granted mandate; this increases sales opportunities. However, the agency mandated remains your sole contact and protects your interests.
Less restrictive: with a sole agency selling your property, it is pretty much easier to manage visits of the property. The owner deals with a solely appointed agent.
No diversification: unlike exclusive mandate, when you opt for open mandate, your property ad is featured in multiple windows agencies. Greater exposure may lead to property value depreciation...
The cons
Missed opportunities and less freedom: you may miss sales opportunities when engaged by an exclusive mandate. Your room to manoeuvre is quite limited.
Increasing chances of finding purchasers: unlike exclusive mandate, open mandate maximise your chances of being seen.
Price: An open contract requires less fee compare to a sole mandate.
Whether you choose an open or exclusive mandate, bear in mind that the key to success is the right estimation of your property by the real estate agent. An exclusive mandate with a reputable estate agency is the best option for a seller. Process of selling a property needs to be managed consistently, carefully and strategically in order to achieve the desired result, that’s the successful sale of your property at the right price and in a reasonable time frame.
